The Crypto User Protection Act of 2022
After the stock market crash of 1929, FDR called on the then infamous stock speculator Joseph Kennedy to draft legislation to form the Securities Exchange Commission. The “Securities Laws” were designed to officially form the agency and pass rules requiring security issuers to mail information to investors with financial and operational disclosures so that informed investment decisions can be made by the people.
Shortly thereafter, other global disclosure frameworks were adopted. The Securities Acts were a legislative response to the speculative ‘back pulls’ of the 1920s, a common tactic of pooling capital and buying large quantities of shares. The perpetrators would then spread information to inflate the price before dumping it on the unsuspecting public, who had little information to rely on other than tips from stock brokers.
The Securities Act of 1933 provides information disclosure rules for new securities issues. The Securities Exchange Act of 1934 provides rules for continued disclosure after those securities are issued and distributed to the public. The Securities Acts passed in 1933 and 1934 solved the disclosure problem for investors of the 1930s with amendments passed later, such as Sarbanes Oxley in response to the Enron fraud and the Dodd Frank Act in response to the financial crisis of 2008 that resulted in the largest rescue operations in history.
On January 3, 2009, The Times UK published an article with the headline: Chancellor on the brink of second bank bailout. The article was the subject of an immutable inscription in the genesis block of the Bitcoin Blockchain that was launched on the same day and has since been quietly known as the Great Protest against the financial system.
Decentralized Autonomous Self-Regulatory Organization?
As governments around the world sound their war cries against decentralized society, Auditchain Labs AG, based in Crypto Valley, Switzerland, is leading the development of a decentralized financial information infrastructure for issuers of securities and digital assets. The Auditchain protocol was designed as a community-owned and operated disclosure protocol for digital asset disclosure and to address the questionable integrity and trustworthiness of the world’s business and financial information that led to the 2008 financial crisis and the Great Protest.
The Auditchain Protocol will be officially launched on June 8, 2022 live on the Digital Accountancy Show – Powered by Auditchain held at the Tottenham Hotspur Stadium in London.
The Auditchain protocol is an Ethereum-based decentralized professional services and financial disclosure protocol that empowers and empowers accountants, CFOs, CFAs, and other professionals to create, validate, and own Process control NFTs that automate immutable accounting, financial reporting, auditing and analytics processes using a machine-readable global standard syntax on the Auditchain protocol.
Every time Process Control NFTs are used, royalties are paid in AUDT, the native staking, settlement and management tool of the Auditchain protocol. AUDT is paid to the creator of the check and to the validators who have guaranteed that the check works correctly.
The Auditchain protocol is designed to modernize the reliability and disclosure of financial condition for the betterment of society’s open ledger-based investor. Systems addressing compliance for the crypto space are common, but this is the only project targeting the $600 billion-a-year professional accounting, disclosure and assurance market.
No credible political, regulatory or economic solution to taxpayer fraud and bailouts has ever been proposed and adopted that could prevent another financial catastrophe. But why should a crypto project do the job of regulators? Perhaps it is because people’s trust in governments and centralized financial systems is at an all-time low. DAOs enable people to determine the future of a project.
The Auditchain protocol can be seen as a decentralized autonomous self-regulatory organization, or “DASRO”, as it has a robust governance layer that calls for critical changes to its functionality upon an affirmative vote from its AUDT token holders. The AUDT Token List is widely anticipated and expected to take place soon.
Should governments and regulators want to regulate crypto in a way that encourages innovation rather than stifling it, the Auditchain protocol would be exactly the kind of framework they would adopt.
Throughout history, people have been called upon by their governments to tackle challenging problems. In the $2 trillion digital asset space, this is definitely worth such a call. Because the crypto space must find a way to regulate itself, or be subject to politically imposed and misguided rules that may one day make you wonder what a great idea it could have been.