SEC’s New Crypto Rulemaking Agenda
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The United States Securities and Exchange Commission (SEC) has recently announced its updated agenda for rulemaking. This approach will focus heavily on reducing regulations surrounding cryptocurrencies. To this end, this move is part of the entity’s efforts to integrate digital assets into the traditional U.S. economy.
Out of the 20 proposed rules, nearly half of them are centered on easing regulations for the crypto sector. This is significant because the entire crypto market, valued at $3.8 trillion out of the $120 trillion U.S. capital markets.
Easing Rules for Crypto Assets
A major part of the SEC’s new agenda is aimed at creating clearer rules for cryptocurrencies. As it stands, one key proposal involved is to create guidelines for the offer and sale of crypto assets, as well as offering certain exemptions and protections. As one of Chairman Atkin’s earlier commitments, this move is to provide clearer regulations for digital assets, a move termed as important part of his broader “Project Crypto” initiative.
To this end, the goal right now is to set clear boundaries for the issuance, custody, and trading of crypto assets, without compromising legality.
Changes to SEC’s Longstanding Regulations
As part of the SEC’s new agenda, considering changes to regulations established decades ago is very important.
At the moment, SEC is planning to review specifically the rules that define “brokers” and “dealers” under the Exchange Act of 1934.
What matters most is that these definitions play a key role in determining who falls under the SEC’s regulations. To this end, the SEC may create special exceptions for crypto, which would allow digital asset trading on U.S. securities exchanges.
To this end, this would mark a major shift from traditional rules that have been in place since the New Deal era. Finally, this step could bring significant changes to how crypto is treated within the broader financial system.
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