Cryptocurrencies will be one of the US review priorities. Security and Trade Commission (SEC) in 2019.
according to According to the SEC's Office of Inspection and Examination Compliance (OCIE), this will protect small investors in the new asset class. OCIE will monitor the following market activities: "offering and selling, trading and managing digital assets". In cases where the digital asset is classified as security, the goal of the SEC's compliance branch will be to ensure regulatory compliance. In the future, digital asset market participants can expect a high level of control from OCIE:
OCIE will take steps to identify market participants offering, sell, trade and manage these products, or actively consider or seek to offer these products, and then assess the extent of their activities. OCIE will conduct reviews for companies active in the digital asset market, including digital asset management, trading, security of funds and client assets, pricing of client portfolios, compliance and internal controls.
According to OCIE, priority review areas were selected based on policy, risk assessment and various sectoral issues.
Last year too
The inclusion of cryptocurrencies as a review priority was also discussed. agenda OCIE in 2018. The focus was then placed on securing digital assets and informing investors about the risks associated with such investments:
Areas of focus will include whether financial professionals apply adequate controls and safeguards to protect these assets against theft or embezzlement, and whether financial professionals provide investors with information about the risks associated with these investments, including the risk of loss. , liquidity risks, price volatility and potential fraud.
This comes at a time when there is a growing sense that SEC shares have had a negative impact on the cryptocurrency sector. As a CCN reported last month, the President of the SEC, Jay ClaytonRepublican lawmakers caught fire on the harsh approach to enforcing the regulations. Some critics have argued that the massive crackdown on ICOs is harming innovation.
Bitcoin ETF Reject
In addition to the crackdown, the SEC also rejected several bitcoin ETF applications in 2018. This was contrary to expectations when Clayton became president of the SEC in 2017. Appointed by a pro-business administration, it was expected then that it would be a boon for the sector. cryptography. Carol Goforth, a professor at the University of Arkansas Law School, also said that deregulation of regulation by bodies such as the SEC crippling the crypto sector. According to Goforth, regulatory compliance has become a long and costly exercise for industry players.
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