On the 21st, the U.S. Securities and Exchange Commission (SEC) announced the establishment of a special team to establish comprehensive and clear standards regarding crypto assets (virtual currencies).
The creation of the special team aims to eliminate regulatory ambiguities surrounding cryptocurrencies, improve investor protection and market integrity.
Priority issues addressed by the special team
Previous SEC resolutions have relied on anyone’s interpretation and partial enforcement of federal securities laws, and have failed to provide clear registration requirements or practical guidance to virtual currency businesses.
As a result, the cryptocurrency market has become a hostile environment for innovation, leading to confusion and criticism. The special team established this time aims to build a new regulatory infrastructure with the following priority issues:
Establishment of clear regulatory rules Proposal of a concrete path for registration procedures Efficient discussion of resources for the establishment of rational information disclosure rules
In addition, the team will provide international technical assistance to Congress as it coordinates the Supreme Court, and will work with the Commodity Futures Trading Commission (CFTC) and foreign regulatory agencies to promote international regulatory harmonization.
Will deregulation progress under the new Trump administration?
During the administration, the SEC, led by former Commissioner Gary Gensler, pushed for stricter regulation of the crypto-assets (virtual currency) industry under no-one’s federal securities laws. It drew much criticism from currency-related companies and pro-money politicians.
The SEC recognizes that the efforts to date have “created an environment in the virtual currency industry that inhibits innovation.”
There were expectations that the new Trump administration would ease regulations regarding virtual currencies. Reforms could create an environment that makes it easier for virtual currency businesses to comply legally, improving the overall health of the market and promoting innovation.
In particular, it appears that progress is being made towards resolving the long-standing issue of independence between Ripple and the SEC. It is hoped that this will be realized.
