SEC's PII Exemption Sparks Debate in Crypto Community
The U.S. Securities and Exchange Commission (SEC) has sparked debate with a recent decision to exempt certain personally identifiable information (PII) of individual traders from reporting requirements under the Consolidated Audit Trail (CAT). The move, aimed at reducing security risks and protecting investors in the world market, has been met with mixed reactions from the crypto community and industry experts.
Acting SEC Chairman Mark Uyeda announced the exemption in February 2023, stating that the CAT was designed to create a modernized audit trail system for market event analysis and reconstruction. However, the exemption allows certain PII, including individuals' names, residential addresses, and birth years, to be excluded from reporting requirements.
The decision has been criticized by some, such as X user Penny Squeezer, who argues that it shields Wall Street criminals rather than addressing underlying issues. Eric Forgy, founder of the decentralized liquidity protocol CavalRe, called the exemption a 'good start' but emphasized the need to eliminate the Know Your Customer (KYC) regulatory process. Forgy and others worry that the exemption could create gaps that sophisticated traders or entities might exploit to evade scrutiny, posing a risk to stock market integrity.
Uyeda, however, has warned that the SEC has sufficient investigative tools to hold accountable those engaging in insider trading, market manipulation, and other schemes. The SEC aims to balance privacy concerns with the need for robust market surveillance.
The SEC's exemption of certain PII from the CAT has sparked a lively debate, with some welcoming the move and others expressing concerns over its potential impact. As the crypto community and industry experts continue to weigh in, the SEC maintains its focus on protecting investors while addressing privacy concerns in the stock market today.
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