Prosper Marketplace CEO Chris Larsen recently commented on the ongoing development of regulation for the fledgling peer-to-peer lending industry commenting that he favors a holistic regulator that “has the best interests of both borrowers and lenders in mind” in a recent interview with Lending Socially.
Larsen commentated that he would favor a regulator other than the Securities and Exchange Commission because it only represents investors and does not have any regulatory authority to protect borrowers.
“We also believe the enormous legal cost involved in registering with the SEC is an extraordinarily high barrier to entry. Sure Prosper benefits from this barrier given that we survived the experience of registration, but many companies didn’t; and we believe more players would further validate and help grow the industry,” said Larsen.
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