Floyd Mayweather, SEC, ICO discussed on Here & Now
And floyd mayweather shall they promoted initial point offerings also called ico's basically a way of fundraising for start up. If you buy an ico you'll be given a token which usually represents a stake in that company calendar and mayweather posted on social media encouraging fans to buy ico's but they didn't mention they were paid to advertise those issues and they promised the value of the ice ios would go up. Dj talent and floyd mayweather. We're eventually find more than seven hundred sixty thousand dollars and the company fronting those issues centr attack was indicted on wire and securities fraud. The cryptocurrency industry is regulated. The actual debates among regulators and market participants are well is regulated. Simona mola is a senior manager at economics consulting firm cornerstone research. She also used to work for the. Us securities and exchange commission. She says the sec regulates the industry with two goals in mind kerr investor while facilitating conduct permission. It's a balancing act. Mola and others will tell you the system worked as it should have to prevent. Dj calot and floyd mayweather from committing fraud. Their case came shortly after the sec. Decided ico's acted like securities and therefore had to follow the same rules. The sec has even recently created a standalone office called the strategic hub for innovation and financial technology. But there are critics who argue. The government is playing giant game of catch up while i look back to the history of regulation and financial market. All regulation was post-facto. Dave jevans is the ceo of cypher. Trace which works with crypto companies and government agencies to craft regulations thumping happened and then regulators came manel regulatory bodies were created to help protect consumers or institution of things that happened. He says there's a long history of underfunded overworked behind the times. Regulators operating complaint driven system. Something horrendous happens makes the headlines and den day move but there's another dynamic place jevans. The cryptocurrency industry is exploding with technological innovations and many regulators are wary of establishing complicated rules. Before they understand. What's going on the bad news about that. Approach is sometimes bad. Things will happen but that's going to happen anyway. Banks get had to accept that if the bank gets hacked. It's backed by the federal deposit insurance corporation or the fdic and some of your money is protected. That's not necessarily the case when it comes to crypto so what's next taxation for one thing there's language on that in the infrastructure bill moving in washington. Dc the chairman of the sec is calling for congress to give regulators more authority to oversee new entities and there might even be yet another currency coming issued by none other than the federal government for here and now. I'm under the bundle. Moody here and now is a production of npr in wbz boston. I'm tanya moseley. i'm robin young. it's here now.