The SEC said the investing public is subject to a number of security laws that regulate how their money is invested and managed in traditional markets like the New York Stock Exchange.
Digital currency companies don’t abide by these same regulations, and that’s the core problem. There is no valid reason or argument for these companies to be exempt from such laws, other than the convenience that the funds provide to crypto platforms in terms of investment.
This seriously harms the interests of the investing public, and from the SEC’s perspective, this needs to be eliminated. The SEC’s mission is to keep these companies in compliance with these securities regulations, but they’ve had problems enforcing those goals.