The Crypto Task Task Task Task Force Crypto Task Task Task Force working group launched a national tour to collect prospects with small teams and projects at an early stage on how digital assets should be regulated. According to a press release, the series of round tables will focus on the balance of anonymity of cryptographic transactions with guarantees to combat money laundering (AML) at the center of the global financial system.
The working group examines whether new regulatory executives built on cryptographic evidence can provide solutions. Two proposals – Polaris 3.0 and the modular consent mechanism – were subjected for examination. According to a declaration, these systems aim to preserve the pseudonym of users while meeting the requirements under the securities law, the Bank Secrecy Act and international standards of LMA.
This initiative marks the effort most accessible to the public of the working group on the crypto of the dry since its creation earlier this year after the departure of the former president of the SEC, Gary Gensler, who was known for his critical position on digital assets. Under the direction of the SEC Commissioner, Hester Peirce, often called “cryptographic mom” for her opinions of support on the industry, the agency reported an evolution towards collaboration rather than a strict application. According to a press release, the double mission of the working group is to maintain the existing law while shaping new rules adapted to the unique characteristics of cryptocurrencies, including decentralized finance (DEFI) and Stablecoins.
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Peirce stressed the importance of a broad commitment. “We want to hear people who could not travel for the round tables that took place last spring in Washington, DC and who may have had no voices in the efforts to develop past policies,” she said. She added that the working group acknowledges that any regulatory framework will have large -scale consequences and undertakes to raise awareness.
One of the most difficult questions for regulators remains how to determine when tokens are considered titles. The American courts have traditionally applied the “test Howy”, a standard of the Supreme Court which classifies investment contracts. However, the application of this test to decentralized tokens, which may lack a central transmitter or an identifiable organization, has proven to be very controversial.
Among the proposals, Polaris 3.0 drew special attention. Described as a “technical-regulator bridge”, he describes an “identity oracles” system which can verify the requirements such as your customer’s knowledge (KYC), screening sanctions and biometric validation without revealing sensitive personal information. Instead, cryptographic evidence would confirm compliance while keeping private user data. To support its deployment, the proposal provides for a self-regulation organization under the monitoring of the SEC which would certify intelligent contracts, managed the identity-oracle networks and would exploit a “civic transparency portal” accessible to the public.
The awareness of the SEC underlines both the technical challenges and the political issues of the regulation of digital assets. The current roadshow represents an effort not only to develop achievable solutions, but also to give participants the basis a role in training future rules of the cryptography economy.
Source: Biometric update
