On May 8, prominent crypto investor and entrepreneur Ryan Shawn Adams challenged the U.S. Securities and Exchange Commission (SEC) over the adequacy of cryptocurrency disclosure. On social media platform X, Adams responded directly to SEC Chairman Gary Gensler's comments about the alleged lack of transparency in cryptocurrency trading.
Adams stated, "Gary says there is no disclosure in cryptocurrencies. He's wrong" and took a confrontational stance against Gensler's criticism that the #cryptocurrency sector lacks adequate disclosure mechanisms comparable to those required in traditional financial markets. Contrary to Gensler's assertions, Adams argues that the #CryptoWatchMay2024 #blockchain , for example, functions as a distributed ledger that publishes an "earnings report" every 12 seconds. This data is available to anyone with Internet access and provides real-time information about the state of the network.
Emphasizing the open nature of blockchain technology, Adams notes that cryptocurrencies not only meet traditional disclosure standards, but exceed them. The transparency inherent in blockchain allows for open auditing of all network activity, unlike the closed corporate financial disclosure systems of traditional markets. According to Adams, this level of transparency, which is "better than cryptocurrency disclosure," refutes the SEC's view and demonstrates the advanced financial transparency capabilities of blockchain technology.
Adams also believes that the SEC could enhance its own disclosure mechanisms by integrating the EDGAR database with the Ethereum blockchain. In theory, such integration would allow the SEC to capitalize on the transparency of the blockchain by providing a more dynamic and accessible platform for financial disclosure.
However, Adams argues that the current debate over disclosure requirements may not be for the sake of transparency. Rather, he notes, these initiatives reflect deeper control issues. "This is by no means a disclosure issue. Regulators may be more interested in maintaining control of the financial system than in increasing disclosure and transparency.
His reasoning on this point is simply insane.
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