After the stock market crash of 1929, FDR asked then-notorious stock speculator Joseph Kennedy to write legislation to form the Securities Exchange Commission. The “Securities Laws” were designed to officially form the agency and adopt rules that required issuers of securities to transmit information by mail to investors containing financial and operating information so that the Town can make informed investment decisions.
Soon after, other global disclosure frameworks were adopted. The Securities Acts were a legislative response to the speculative “rug pulls” of the 1920s, a common tactic that involved raising capital and buying large amounts of stock. The perpetrators would then spread information to drive up the price before unloading it on the unsuspecting public who had little information to trust other than stockbrokers’ advice.
The Securities Act of 1933 provides 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 investor disclosure problem 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 2008 financial crisis that resulted in the largest bailouts in history.
On January 3, 2009, The Times UK published an article headlined “Chancellor on brink of second bank bailout”. The article was the subject of an immutable inscription on the genesis block of the Bitcoin Blockchain which was launched on the same day and has since been discreetly known as the Great Protest Against the Financial System.
Decentralized Autonomous Body for Self-Regulation?
As governments around the world sound their rallying cries against the decentralized society, Auditchain Labs AG, based in Crypto Valley, Switzerland, is leading the development of a decentralized financial disclosure infrastructure for issuers of securities and digital assets. The Audit Chain Protocol is designed as a community governance and ownership disclosure protocol for the disclosure of digital assets and to address the questionable integrity and reliability of the world’s business and financial information that led to the 2008 financial crisis. and the Great Protest.
The Auditchain Protocol will be formally launched on June 8, 2022 live at the Digital Accountancy Show – Powered by Auditchain taking place at Tottenham Hotspur Stadium in London.
The Auditchain Protocol is an Ethereum-based decentralized professional services and financial disclosure protocol that incentivizes and enables accountants, CFOs, CFAs, and other professionals to create, validate, and own process control NFTs that automate immutable processes of accounting, financial reporting, auditing and analysis using a machine. -Global standard syntax readable in the Auditchain protocol.
Every time process control NFTs are used, royalties are paid in AUDT, the native staking, settlement and governance utility of the Auditchain protocol. AUDT is paid to the creator of the control and to validators who have provided assurance that the control is working properly.
The Chain of Audit Protocol is designed to streamline financial statement assurance and disclosure for investor improvement based on the open ledger of society. Systems that address compliance in the crypto space are common, but this is the only project that addresses the $600 billion-a-year market for professional accounting, disclosure, and assurance services.
No credible political, regulatory, or economic solution to taxpayer fraud and bailouts has ever been proposed or adopted that could prevent another financial catastrophe. But why would 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 allow People to determine the future of a project.
The Audit Chain Protocol could be viewed as a Decentralized Autonomous Self-Regulatory Organization, or “DASRO”, because it features a robust governance layer that invokes critical changes to its functionality upon the affirmative vote of its AUDT token holders. The AUDT token listing is widely anticipated and expected to happen imminently.
If governments and regulators wanted to regulate cryptocurrencies in a way that would stimulate and not stifle innovation, the Auditchain Protocol would be just the kind of framework they would adopt.
Throughout history, governments have called on people to help tackle tough problems. In the $2 trillion digital asset space, this can certainly pay off. Because the crypto space needs to find a way to regulate itself, or be subject to misguided and politically imposed regulations that may one day make you wonder what a wonderful idea it could have been.
This post The Cryptocurrency Users Protection Act of 2022
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