The Securities and Exchange Commission (SEC) has brought former Senate staffer Corey Frayer on board to serve as a new advisor regarding crypto and digital currency-related issues.
The SEC Is Pushing Its Crypto Agenda Forward
The SEC has long been a thorn in the side of the crypto space. Despite all the bitcoin-based exchange-traded fund (ETF) applications that have made their way across SEC desks during the past four or five years, the agency has long thought the space unstable, and thus none of those applications have been approved or even given the time of day.
Several times, it has seemed like the SEC will take a specific application seriously. However, it just delays the decision-making process time and time again until the submitting company finally decides to pull its application upon realizing the agency isn’t going to make any sort of formal choice in the coming future.
But 2021 offered a change of scenery for most crypto traders who had lost hope in the idea of a bitcoin ETF. Such a product was finally released to traders on the New York Stock Exchange (NYSE) through a company called Pro Shares. At first, the product was heavily criticized for being based on bitcoin futures technology rather than physical bitcoins.
Many people consider futures technology to be inferior to the real thing, but it wasn’t long before this attitude somewhat changed, and people were willing to give the product a chance. Now, by bringing Frayer onboard along with three other executive hires – Phil Havenstein, Jennifer Songer, and Jorge Tenreiro – some believe the SEC is ready to delve even deeper into a space it’s long been critical of.
Gary Gensler – the current head of the SEC – said in a statement:
Corey, Phil, Jenny, and Jorge have exceptional experience. I’ve already begun to rely on their valuable counsel on policy, enforcement, and agency operations, and I look forward to our continued work together to execute the SEC’s mission.
This Could Positively Influence the Future
Several high-profile individuals working in the crypto space were also quick to issue positive comments regarding the presence of Frayer. Jorge Pesok – general counsel and chief compliance officer at crypto startup Tacen – said in an interview:
The establishment of this executive role indicates a clear desire on the part of the Commission to bring more resources to bear in its understanding and oversight of our nascent space. Arriving on the heels of December’s productive Hill hearing on crypto, I’m optimistic that the appointment of Corey Frayer will contribute to the development of a commonsense regulatory framework for the crypto industry that benefits our companies as well as the consumers we serve.
Not long ago, Gensler called for crypto exchanges and related businesses to embrace regulation, as this was likely the only way they’d be able to retain customer trust.