Securities and Exchange Commission has assumed a strong stance against the blockchain industry. However, the regulator has now redirected its cannons at traditional financial enterprises.
According to the latest reports, financial giant Goldman Sachs has received a massive fine of $6 million as a penalty for not disclosing all the required information regarding its trading activities. On this account, the SEC has levied a heavy fine against the firm for not meeting the requirements about the trading information during the last 10 years.
SEC officials have also issued a statement regarding their actions. The firm has noted that the information provided by the firm that is called blue sheet data does not disclose the whole situation regarding its trading activities and ventures.
Over the course of last decade, Goldman Sachs has submitted more than 22000 faulty blue sheets as per the objection raised by federal agency. On this account, SEC has also pointed out 43 counts of compliance oversight and other errors on the blue sheets.
In this manner, the firm is asked to account for 163 million transaction records that are missing from the records and require proper disclosure.
SEC Asks Goldman Sachs to Provide Missing Information
The agency has alleged that Goldman Sachs does not any formal review process to ensure regulatory compliance for its transaction records. In this manner, the employees of the firm do not have a system or standardized process that they may follow to offer comprehensive and corrected information of their service records.
At the same time, the investment bank has not challenged the claims made by SEC against the firm. On the other hand, it has agreed to accept the penalty that the regulator has levied on the financial institution.
There are some speculations about why regulators are now going after Goldman Sachs. It seems that the federal agency has developed a strong stance against any financial entity that indicates too much independence. Gary Gensler the chief of the agency has called the financial markets a field that is filled with hucksters and fraudulent actors.
On this account, the regulator expects all the banks and other financial institutions to get along with its policies and legislative amendments.
Goldman Sachs Takes Interest in the Blockchain Sector
In the last few months, Goldman Sachs has retained a positive stance towards the blockchain industry. It is one of the easiest ways to get in a tussle with the existing SEC regime headed by Gary Gensler.
Global head of digital currencies at the investment bank, Mathew McDermott, recently told media that the firm has setup a dedicated trading desk for cryptocurrency. He also talked about adding more utility to the crypto markets.
At the same time, he explained the advantages and potential of tokenization. He retained that this feature of the blockchain tech can transform the financial markets bringing more traction around digital currencies. Meanwhile, he also indicated his excitement regarding the impact of the technology on various areas in the financial sector that has the potential for enterprise adoption with a view of generating considerable profits.
His stance indicates that blockchain technology can shape the financial infrastructure for the private sector brining more utility for the investors and becoming more accessible at the grass root level.