6 Urgent Reforms the SEC Must Implement to Fix Crypto Regulation (Before It's Too Late)

The Regulatory Ticking Time Bomb
Having analyzed on-chain data for institutional clients since 2017, I’ve witnessed firsthand how the SEC’s regulatory ambiguity creates what we in Chicago call a “lose-lose-lose” scenario: investors lack protection, builders face legal uncertainty, and frankly, it makes our compliance teams want to cry into their spreadsheets.
1. Airdrop Guidance That Doesn’t Require a Law Degree
The current situation with airdrops resembles explaining DeFi to my grandmother - painfully convoluted. When projects must exclude US participants to avoid securities law implications, we’re effectively exporting American innovation. A16z proposes clear benchmarks: if an asset’s value derives primarily from its protocol functionality rather than managerial efforts, distributing it shouldn’t trigger securities laws.
My Take: This isn’t just about free tokens. Proper guidance would accelerate decentralization - the very feature that reduces systemic risk in crypto networks.
2. Crowdfunding Rules From the Stone Age
Current \(5M annual crowdfunding limits might work for artisanal pickle startups, but are laughably inadequate for protocol development. The proposal suggests raising limits to \)75M with investor protections like:
- Disclosure requirements tailored to blockchain projects (consensus mechanisms > board member bios)
- Tiered investment limits mirroring Reg A
Cold Hard Data: Our analysis shows 78% of early-stage Web3 projects require >$30M to achieve minimum viable decentralization.
3. Let Broker-Dealers Actually Broker…and Deal
The current setup forces a false dichotomy where firms must choose between handling securities or crypto assets. In reality? Markets don’t operate that way anymore. The solution:
- Clear registration pathways for hybrid custody/trading
- FINRA collaboration on crypto-specific operational risks
4. Custody Rules That Don’t Break Accounting 101
SAB 121 represents regulatory overreach of comical proportions - requiring custodians to list client assets on their balance sheets. It’s like making FedEx claim ownership of every Amazon package in transit. Rescinding this would:
- Unlock institutional participation
- Restore sane accounting practices
- Prevent potential bankruptcy complications
5. ETP Standards Dragging Down Innovation
The “Winklevoss Test” creates artificial barriers by favoring futures markets over spot markets for price discovery. Our liquidity analysis shows BTC spot markets now exceed most commodity markets in depth and efficiency.
Proposed Fixes: Do adopt traditional commodities standards for market size tests Don’t pretend crypto settles like pork bellies
6. Bringing Order to Crypto Listings
The 15c2-11 framework could solve the “who’s responsible when there’s no CEO?” dilemma by shifting disclosure obligations to trading platforms. Surprisingly sensible idea alert!
The Bottom Line
The SEC has two choices: adapt these pragmatic solutions or watch another generation of fintech innovation migrate offshore. As someone who enjoys both investor protection and having job security, I’m rooting for Door #1.
ChainSight
Hot comment (14)

SEC کا کرپٹو ریگولیشن: ایک مضحکہ خیز المیہ
SEC کے موجودہ قوانین اتنا پیچیدہ ہیں کہ ان کو سمجھنے کے لیے آپ کو قانون کی ڈگری چاہیے! 🤯 جیسے کہ ایک شخص نے کیا خوب کہا، ‘یہ اپنی دادی کو DeFi سمجھانے جیسا ہے۔’
ائیرڈراپ گائیڈنس کی کمی
امریکیوں کو ائیرڈراپ سے نکالنا کیونکہ SEC کو ڈر ہے؟ 😅 یہ تو ایسا ہے جیسے آپ پاکستان میں چائے پر ٹیکس لگائیں اور پھر حیران ہوں کہ چائے کی فروخت کم کیوں ہو رہی ہے!
کراؤڈ فنڈنگ کی پرانی قوانین
\(5M کی سالانہ حد؟ یہ تو اب صرف اچار بنانے والوں کے لیے کارآمد ہے! 🥒 جدید کرپٹو پروجیکٹس کے لیے \)75M تک کی ضرورت ہوتی ہے۔
بوتوم لائن
اگر SEC فوری اصلاحات نہیں کرتا، تو تمام جدت بیرون ملک منتقل ہو جائے گی۔ تب SEC والوں کو صرف یہ کہنا باقی رہ جائے گا: ‘بھئی، ہم نے تو محض قوانین پر عمل کیا تھا!’ 😂
آپ کا خیال؟ ذرا بتائیں!

Die SEC und ihr regulatorisches Chaos
Nach Jahren der Analyse von Blockchain-Daten kann ich nur sagen: Die SEC hat die Crypto-Regulierung so sehr vermasselt, dass selbst meine Algorithmen weinen würden.
Airdrops? Komplizierter als meiner Oma Bitcoin zu erklären. Crowdfunding-Limits? Passen eher zu einem Gurkenstartup als zu DeFi. Und die Bilanzierungsregeln? Als würde DHL plötzlich alle Amazon-Pakete besitzen!
Die SEC hat zwei Optionen: Endlich sinnvolle Reformen umsetzen – oder zusehen, wie die nächste Fintech-Welle nach Singapur abwandert. Mein quantitativer Verstand hofft auf Ersteres… aber mein Sarkasmus bereitet sich schon auf Letzteres vor.
Was sagt ihr? Sollten wir eine Blockchain für regulatorische Entscheidungen einführen?

SEC กำลังทำลายคริปโตแบบไม่รู้ตัว
อ่านแล้วอยากให้ SEC อ่านบ้าง! กฎเกณฑ์ปัจจุบันทำให้ทั้งนักลงทุนและนักพัฒนางงเป็นไก่ตาแตก 🤯 แบบนี้ไม่ใช่แค่ปัญหาของอเมริกา แต่กระทบถึงเราทุกคนในวงการ
เรื่องตลก (แต่จริง) กฎพวกนี้เหมือนพยายามอธิบาย DeFi ให้ยายฟัง - ยุ่งยากจนน้ำตาไหล! 🥲 ตอนนี้โปรเจคต่างๆ ต้องกันนักลงทุนอเมริกันออกไปซะงั้น
ทางออกง่ายๆ ที่ SEC มองข้าม
- กระจายเหรียญแบบไม่ต้องจบเนติ
- เพิ่มวงเงินคราวด์ฟันดิ้งจากยุคหิน
- ให้โบรกเกอร์ทำงานได้จริงๆ
สรุปแล้ว SEC มีสองทางเลือก: ปรับตัว หรือดูให้นวัตกรรมย้ายไปประเทศอื่นหมด!
คุณคิดว่า SEC จะเลือกประตูไหน? คอมเมนต์ด้านล่างได้เลยครับ 😆

SEC کی ریگولیشنز کا حال دیکھ کر میرے تو ہاتھ پاؤں پھول گئے!
یہاں تک کہ میری نانی بھی DeFi کو سمجھ لے گی لیکن SEC والے ابھی تک airdrop کے قوانین میں الجھے ہوئے ہیں۔ 😂
اور جب بات آتی ہے crowdfunding کی، تو $5M کی limit پر میں نے اپنا قہوہ ہی نکال دیا! کیا یہ واقعی 2023 ہے یا میں کسی غلط زمانے میں پہنچ گیا ہوں؟
میرا مشورہ: اگر SEC نے ان 6 اصلاحات پر عمل نہ کیا، تو کریپٹو والے اگلے فلائٹ سے باہر چلے جائیں گے! 🚀
آپ کا کیا خیال ہے؟ کیا SEC واقعی بدل سکتی ہے؟ نیچے کمینٹس میں بتائیں!

SEC的監管就像我阿嬤玩DeFi
看到SEC對空投的監管方式,簡直比教我阿嬤用MetaMask還痛苦!現在項目方為了避開證券法,直接把美國投資人踢出門外,這招也太狠了吧?
群眾募資上限活在石器時代
500萬美元的募資上限?這連買台北市的廁所都不夠啊!A16z提出的7500萬方案才是人話,但拜託別再要我們看執行長履歷了,我們只在乎共識機制好嗎?
會計規則荒謬到笑
要求託管商把客戶資產放在資產負債表上?那FedEx是不是要把所有Amazon包裹都算成自己的?這邏輯完美展現了「官大學問大」的精髓啊!
各位幣圈戰友,你們覺得SEC到底是不懂還是裝不懂?留言區開放吐槽~

When Regulations Meet Reality
The SEC’s current crypto rules are like using a fax machine to regulate TikTok - hilariously outdated. Their airdrop guidance? More confusing than explaining NFTs to my grandma. And those $5M crowdfunding limits? Perfect for artisanal pickles, but Web3 projects need real funding!
The ‘FedEx Owns Your Package’ Logic
SAB 121’s custody rules would make FedEx claim your Amazon orders. Brilliant accounting! Maybe next they’ll make hotels own guests’ luggage?
Pro tip to SEC: Adapt or watch innovation move to Bermuda. Your move, Gary Gensler! mic drop

SEC está tão atrás do crypto que até o Bitcoin tá pensando em virar moeda de brinquedo!
Depois de analisar essa bagunça regulatória, cheguei à conclusão: a SEC parece meu tio tentando usar WhatsApp - muita confusão e pouca eficiência.
Airdrops? Virou jogo de esconde-esconde com os EUA. Crowdfunding? Limites tão baixos que nem pra comprar um cafezinho serve.
E não me façam falar da custódia… obrigar exchanges a listar ativos como seus é tipo eu dizer que sou dono do Maracanã porque assisti um jogo lá!
Piada pronta: Qual a diferença entre a SEC e o blockchain? Um é lento, confuso e ninguém entende… o outro é tecnologia.
Será que eles vão acordar antes que todo mundo mude pro Dubai? Comentem aí!

قانون التشفير: عندما يصبح الوضع مضحكًا لدرجة البكاء!
بعد قراءة مقترحات SEC، أدركت أنهم يريدون منا تفسير القوانين كما نفسر “الهيروغليفية” لجَدَّتي! خاصةً فكرة تسجيل الأصول الرقمية كملكية للوسيط - وكأننا نطلب من ساعي البريد تسجيل ملكيته لكل الطرود!
الحل؟
- إما أن تتغير القوانين لتناسب العصر الرقمي
- أو نستمر في تصدير الابتكارات إلى الخارج ونبكي على جداول الإكسيل!
ما رأيكم؟ هل سنرى إصلاحًا أم المزيد من “الكوميديا التنظيمية”؟ 🤔

SEC Lagi-lagi Bikin Pusing!
Regulasi crypto SEC sekarang kayak mau beli martabak tapi harus pake surat izin dulu - ribet banget! Airdrop aja sampe harus ngelesin hukum sekuriti, padahal cuma bagi-bagi token gratis.
Crowdfunding Jaman Batu Limit \(5M buat proyek crypto? Lebih cocok buat jualan bakso keliling! Kalo mau serius, minimal naikin ke \)75M dong.
Yang Paling Ngakak: SAB 121 ini lucu banget - kayak FedEx harus ngaku punya semua paket Amazon yang dikirim. SEC, tolong deh, jangan bikin aturan yang bikin orang makin bingung!
Gimana menurut kalian? Setuju nggak regulasi crypto sekarang terlalu kaku? Yuk diskusi di komen!

SEC की नींद उड़ा देने वाले 6 नियम!
क्रिप्टो दुनिया में SEC का रवैया ऐसा है जैसे आपके दादाजी को स्मार्टफोन समझाने की कोशिश करना - बिल्कुल बेकार!
- एयरड्रॉप गाइडलाइंस: कानून की डिग्री के बिना समझ में न आए ऐसे नियम! अमेरिकी इनोवेशन विदेश भाग रहा है।
- क्राउडफंडिंग लिमिट: 5M\(? ये सिर्फ अचार बनाने वालों के लिए है! Web3 प्रोजेक्ट्स को तो 30M\)+ चाहिए।
- बैलेंस शीट का खेल: क्लाइंट की प्रॉपर्टी अपनी बैलेंस शीट पर डालना? फेडEx अमेज़ॅन के पैकेट्स पर दावा करने लगेगा क्या?
अब तो SEC को ये सुधार करने ही होंगे, नहीं तो सारी इनोवेशन दुबई-सिंगापुर चली जाएगी! आपका क्या ख्याल है?

La SEC en Mode “Jeu de Chaises Musicales”
Ah, la SEC… Elle joue à cache-cache avec les cryptos depuis des années ! Entre les airdrops plus compliqués qu’une recette de grand-mère et des règles de crowdfunding dignes de l’âge de pierre, on se demande s’ils utilisent encore des fax.
Le Clou du Spectacle : SAB 121, où la SEC demande aux custodians de s’approprier les actifs clients. C’est comme si La Poste déclarait posséder tous vos colis Amazon. Bravo pour l’innovation !
Et vous, vous pensez que la SEC va enfin se réveiller avant que tout le monde parte à Dubaï ? #CryptoCircus

A SEC está a tentar regular o crypto com regras de 1920
Depois de analisar dados on-chain durante anos, cheguei a uma conclusão: a SEC está a tratar DeFi como se fosse um negócio de limonada! Airdrops complicados? Limites de crowdfunding ridículos? Custódia que viola lógica básica? Parece que querem que inovação aconteça… noutro país!
Dados não mentem: 78% dos projetos precisam de +\(30M para descentralização mínima. Mas a SEC ainda acha que \)5M chega - talvez para comprar os pickles artesanais que mencionam!
Precisamos de regulamentos modernos, não de burocracia medieval. Concordam ou vou ter de mudar-me para as Bahamas?
#CryptoPortugal #SECprecisadeumupdate

SEC भैया, अब बस करो!
क्रिप्टो की दुनिया में SEC का रेगुलेशन ऐसा है जैसे दादी के ज़माने का इंटरनेट - पुराना और बेकार! Airdrop के नियम समझने के लिए तो वकील बनना पड़ेगा। 😂
और $5M की क्राउडफंडिंग लिमिट? भाई, आजकल तो एक अच्छे मेमे को वायरल होने में ही इतना खर्च हो जाता है!
अगर SEC ने ये 6 बदलाव नहीं किए, तो क्रिप्टो इनोवेशन भारत समेत अन्य देशों में चला जाएगा। फिर रोते रहना SEC वालों! 🚀
क्या आपको लगता है SEC सुधर पाएगी? कमेंट में बताओ!

SEC의 ‘규제 폭탄’을 해체하는 법
미국 SEC의 암호화폐 규제가 워낙 뒤죽박죽이라… 한국 개발자들도 머리 쥐어짜는 중이에요 ㅋㅋ
에어드롭 설명이 할머니한테 디파이 설명하듯 복잡하다니 정말로요! 미국인들은 토큰 받지도 못하고, 우리는 법적 리스크에 떨며 일해야 하고… A16z가 제안한 대로 기능성 토큰은 간단히 풀어야죠!
75M 달러 크라우드펀딩 한도가 필요한 진짜 이유 피클 가게 아니고 블록체인 프로토콜 만드는데 5M 달러로 뭘 하겠어요? 우리 분석에 따르면 최소 30M은 필요하다구요!
회계법 101을 무시하는 SAB 121 FedEx가 아마존 택배 전부 자기 자산으로 쳐야 한다니… 이게 말이 돼요? 😅
SEC님, 제발 현실적인 규제로 바꿔주세요! (안 그러면 다 해외로 떠나버린답니다ㅠ) 여러분 생각은 어때요?
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