The financial markets of the United States have been loaded for a long time with a mosaic of outdated paternalistic rules, too complex. Meanwhile, government failure to establish a regulatory regime for digital assets, along with its aggressive persecution of the industry, has suffocated innovation. As expected, the rest of the world advanced, leaving the United States behind.
Now, under the leadership of President Trump, we are on the verge of a historical change. Its “greatest campaign of deregulation in history” and “revolution of common sense” offers us a rare opportunity to eliminate artificial borders, withdraw outdated philosophies and reconsider our approach to regulate financial markets and digital assets ecosystems. Instead of creating and being bound by reactive regulations designed for past crises and technologies, we can design flexible and vision of the future that promote innovation.
While I imagine these frames, I remember the wisdom shared by the president of the Commission of Securities and Securities, Harvey Pitt (2001-2003), a lion of the Securities Bar, which proposed a simple but deep solution to improve the equity markets of equity of The United States: Develop guiding principles for our markets to incorporate. President Pitt compared these with the ten commandments of God: clear principles to govern behavior with the industry responsible for fulfilling them.
Too often, regulators and market participants are bogged down in the thoroughness of prescriptive laws and lose their central intention. Although the rules, norms and rules have their place, the “ten commandments” proposed here provide a solid base for future frameworks. The key is to first understand the purpose of federal securities laws.
In essence, these laws govern transactions that involve values, whether they are actions of a company, promises of loans or investment participations. When people trust their money, they owe them specific duties. Securities laws are mainly a dissemination regime designed to guarantee fair and transparent exchanges that provide investors the information they need to evaluate the risks and rewards of their investments.
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These laws arose after the collapse of the stock market of 1929, which was fed by little ethical practices, such as privileged information and manipulation of shares, and exacerbated by the asymmetry of the information between buyers and securities vendors. The 1933 Securities Law and the Actual Exchange Law of 1934 were promulgated to avoid these abuses and to facilitate companies to obtain capital, protect investors who invest their capital and ensure that the markets are fair and efficient, at the same time, at the same time which minimizes loads in honest commercial activities.
Despite good intentions, these laws have become too complex, suffocating competition and limiting the freedom of investors. To reinvent the regulation of the financial market, particularly in the light of emerging technologies and digital assets subject to securities laws, we must return to the principles that shape these laws, principles that promote equity while minimizing charges In honest businesses.
According to President Pitt’s vision, I distilled the central values for market participants in the next ten commandments for a reliable market:
- Declare material information. The complete and fair dissemination is the crux of the Securities Laws. Issuers must provide truthful, complete and non -economic information to investors so that they can make informed financial decisions. Hide or misrepresent critical information that impacts the expectations of profits undergoes the confidence and integrity of the market.
- You will not fool or manipulate yourself. Market fraud and manipulation distort the true value of values, damaging investors and market. Preventing deceptive practices helps guarantee equity.
- You will not trade with material non -public information. Insider Trading provides an unfair advantage for those with access to confidential information. This guarantees a fair playing field for all market participants.
- You will tell the truth about your financial health. The financial statements must be precise and transparent, which reflects the true financial condition of a company, so that investors can accurately evaluate the risks and make informed financial decisions.
- You will treat all investors equally. All investors must have the same access to the information and opportunities of the materials. This guarantees equity and avoids internal advantages and discriminatory practices.
- Will reveal the risks involved. Investors must be informed of the risks associated with their investments so that they can make decisions aligned with their financial objectives and risk tolerance.
- You will act according to their duties to others. Market participants who must trust and responsibility, as financial professionals and corporate directors, must act in the interest of their clients and shareholders, not for their own personal benefit.
- You will strive to avoid conflicts of interest, but if some are inevitable, you will reveal them. Market participants should avoid or minimize conflicts of interest, but inevitable, conflicts must be revealed. Transparency allows investors to make decisions with an understanding of possible biases and retains trust.
- You will ensure fair and transparent markets. Markets must operate on the basis of true supply and demand, free of artificial distortions. This promotes confidence and fair prices.
- You will promote efficient and orderly markets. Markets must operate without problems, with transparent prices and equal access to all participants. This encourages market stability and investor trust.
By focusing on these basic principles, we can create adaptable regulatory frameworks that follow the rhythm of technological advances and avoid the limitations of obsolete laws. This is the time for a seismic change in financial regulation towards an approach that anticipates future markets and innovations. We can build a future financial system that benefits everyone by guaranteeing clarity, equity and order while promoting innovation.
