The growth of the cryptocurrency industry has led the SEC to create a unit to regulate crypto issuers.
The United States Securities and Exchange Commission (SEC) has published a press release in which it has announced its intention to create a unit to regulate cryptocurrency issuers.
In her Press release, the SEC has explained that it will create two new offices: the Office of Industrial Applications and Services, and the Office of Cryptoassets, which will be part of the Division of Corporation Finance Disclosure Review Program (DRP), which will be responsible for supervising cryptocurrency issuers and companies.
The growth of the sector and the lack of regulation
According to Renee Jones, director of the SEC's DRP, the new offices will allow for “improve knowledge and focus in areas such as cryptoassets, financial institutions, life sciences and industrial applications and services,” while facilitating the ability to carry out the agency’s objectives.
With these offices, the SEC will also be able to better manage their “resources and experience” to address the unique and evolving submission review issues related to cryptoassets.”
The decision to create these offices is made due to the rapid growth of the industry crypto and life sciences, which has led to the need for more specialized support, the SEC statement explained.
SEC Chairman and Crypto Regulation
The creation of these new offices follows the path marked by --Gary Gensler, SEC Chairman, who has shown his Commitment to crypto regulation on several occasions and has pointed out that most cryptocurrencies on the market are unregistered securities.
Gensler used a speech on September 8 to ask crypto token issuers for their collaboration with agencies to register their tokens as securities where applicable.
This statement also agrees with his stance on cryptocurrencies, as it has pointed out on several occasions that “the offers and sales of these thousands of crypto security tokens are covered by securities laws”. Gensler has pointed out on several occasions that “most cryptocurrencies on the market are unregistered securities".
Gensler has also noted that “investors deserve disclosure to help them sort between investments they think will succeed and those they think will fail.” On this, the SEC chairman believes that investors deserve a Greater protection against fraud and manipulation market.
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