2024-9-21 23:00 |
Former President Donald Trump’s DeFi project, World Liberty Financial, will not be exempt from the stringent and opaque regulations imposed on US-based crypto ventures, according to SEC Commissioner Mark Uyeda.
In an upcoming interview with Fox Business journalist Eleanor Terrett, Uyeda acknowledged the challenges Trump’s project will face as it navigates the complex regulatory environment for digital assets.
However, he also clarified that these will largely relate to disclosure-related requirements, and the SEC would not act as a “merit regulator.”
He said:
“The Commission is a disclosure regulator, not a merit regulator. We do not judge the merits or risks of any one project, so I am concerned with any call for us to do so.”
His comments come amid speculation that the Democratic party may push for a regulatory crackdown against the venture due to the deep partisan divide.
Uyeda, who has served as an SEC commissioner since June 2022, emphasized that World Liberty Financial will be required to meet the same disclosure and transparency standards that apply to all crypto-related firms in the US.
Despite the former president’s high-profile involvement, Uyeda indicated that the SEC would scrutinize the venture to ensure it is in line with current laws, warning that Trump’s legal team would need to be prepared for regulatory hurdles.
Uyeda said:
“I would tell them to hire good lawyers because they will have to navigate the same confusing and opaque process that every other entrepreneur in the space has faced.”
Lack of clear guidanceThe SEC’s approach to regulating the crypto industry has been a source of frustration for many in the sector. Uyeda himself has been critical of the commission’s perceived lack of clear guidance, which has led to growing concerns that regulatory uncertainty could drive crypto innovation overseas.
Nevertheless, Uyeda reiterated that the SEC’s role is to ensure proper disclosure rather than determining the value of specific projects.
Hester Peirce, another SEC commissioner, recently echoed these concerns, calling the current regulatory environment “toxic” and warning that the lack of clarity could stifle innovation in the US crypto market.
The push for more transparent regulation has gained traction among lawmakers, with some advocating for a joint advisory body to create a clearer framework for the burgeoning sector. World Liberty Financial has faced skepticism from investors, who question its ability to gain traction amid the regulatory challenges.
Trump has claimed the project will help position the US as a leader in the global crypto market, but success may hinge on whether regulatory bodies can offer clearer guidance in the near future.
The post SEC won’t judge ‘merits’ of Trump’s DeFi project, but same regulatory issues await appeared first on CryptoSlate.
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