The SEC upgrading initiative aims for 21st-century finance, addressing key policy recommendations from the White House.
This is a development step to modernize the U.S. Securities and Exchange Commission (SEC), making it compatible with modern financial practices and advanced regulatory requirements.
MAIN CONTENT
The SEC modernization initiative aims to respond to the rapidly evolving financial market in the 21st century.
This event stems from important policy proposals put forth by the White House.
The goal is to enhance oversight efficiency, protect investors, and increase market transparency.
What is the SEC modernization initiative and why is it important?
The initiative aims to restructure the SEC to align with the current digital financial landscape and complex products. This helps the agency ensure transparency, effective oversight, and investor protection in an increasingly robust market.
The SEC, as the leading securities market regulator in the U.S., is facing many challenges due to volatility and rapid innovation in the financial sector. Modernization will help the organization keep pace with technological speed and new trends while providing a clear legal framework for new financial activities such as cryptocurrencies or DeFi.
According to the White House report in 2024, these changes are necessary to maintain a leading position in preventing fraud and enhancing transparency for global investors.
“A modern management system is the foundation to ensure fairness and safety for the global financial market, contributing to sustainable economic development.”
Gary Gensler, Chairman of the SEC, March 2024
What policies from the White House support this initiative?
The White House has proposed several policies aimed at improving the financial legal framework, particularly focusing on managing technology and digital assets. The SEC modernization initiative is the answer to these recommendations.
The proposals focus on enhancing the ability to monitor electronic financial activities, protecting consumers and investors from emerging risks, while facilitating innovation and the development of financial technology.
The U.S. government recognizes that reforming laws and regulatory organizations effectively mitigates fraudulent behaviors, enhances market confidence, and expands safe investment opportunities.
“Updating policies to align with technological advancements not only protects investors but also promotes a fair competitive business environment.”
Janet Yellen, U.S. Secretary of the Treasury, 2024
What specific changes will this initiative bring to the financial market?
The initiative is expected to strengthen oversight mechanisms using modern technology, improve legal processes, and enhance international coordination to manage new financial products like cryptocurrencies and DeFi.
The SEC will apply stricter standards for financial reporting, risk transparency, and enhance investor protection by adjusting regulations related to blockchain technology and cryptocurrency wallets.
This change aims to build a stronger and more sustainable financial environment while helping to prevent systemic risks and protect the market from excessive volatility.
Factor Before Improvement After Improvement Regulated Entity Traditional securities, basic trading Expanded to include cryptocurrencies, DeFi, complex derivatives Applied Technology Traditional systems with manual supervision Big data analysis, AI, and blockchain technology Investor protection mechanisms Mainly based on current legal regulations Enhanced transparency, risk warnings through technology and new regulations
Frequently Asked Questions
How will the SEC's modernization initiative affect individual investors?
Individual investors will be better protected thanks to enhanced transparency and oversight standards, reducing the risk of fraud and misinformation.
Will these changes help promote cryptocurrency development?
Indeed, a clearer legal framework helps make cryptocurrencies more transparent and reliable, thereby attracting investors and facilitating business development.
What technology will the SEC use to monitor the market?
The SEC will leverage artificial intelligence, big data analysis, and blockchain technology to monitor and analyze market activities more accurately.
Will the new policies affect cryptocurrency exchanges?
The policy will require exchanges to enhance information transparency, comply with customer protection regulations, and more effectively combat money laundering.
When is the expected completion time for this initiative?
The SEC is expected to implement improvements step by step from 2024 to 2026, while continuously updating based on market development progress.
Source: https://tintucbitcoin.com/sec-my-ra-mat-du-an-crypto/
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