In accordance with the introduced rule, individuals trading in crypto assets, securities or government securities with assets exceeding $50 million will have to "become members of a self-regulatory organization and comply with federal securities laws and regulatory obligations."
Commenting on this move, economist and well-known bitcoin critic Peter Schiff noted the lack of logic in the SEC's argument, since there is no law that would support this decision. Interestingly, Schiff often spoke negatively about bitcoin, claiming that the price of the first cryptocurrency would collapse to zero.
When the perplexed Commissioner Hester Pierce asked the SEC staff how many people fall under this rule and whether those who write the code will need to register, she received the following answer:
If you write software and also use it to trade cryptocurrency securities, then this concerns you… This is a market that is not transparent and does not meet the requirements, so we do not have data.
In response, Commissioner Pierce, who has often expressed dissatisfaction with the way the agency interacts with the cryptocurrency market, said that its participants "do not comply with the requirements because they cannot understand our rules."