Cryptocurrency Made Priority for SEC - What Will This Mean for the Future?

Cryptocurrency has been scrutinised over the past year by the United States Securities Exchange Commission (SEC). Such scrutiny comes as its compliance office includes fintech and cryptocurrencies to the priorities list. 

As per an announcement from the SEC’s Office of Compliance Inspections and Examinations (OCIE), the organisation has put new financial technologies, including digital currency, at the forefront of their concern for the coming year.

In the words of the regulator, new technological developments in capital formation and investment advice “warrant ongoing attention and review.”

Chairman of the SEC, Jay Clayton has said:

“OCIE’s 2020 examination priorities identify key areas of risk, both existing and emerging, that we expect self-regulatory organizations (SROs), clearing firms, investment advisers and other market participants to identify and mitigate. I applaud OCIE’s thoughtful, strategic and efficient focus, which is critical to the fulfillment of the SEC’s mission and our service to Main Street investors.”

OCIE

At the start of last year, a similar announcement was made with the office saying that, “OCIE will continue to monitor the offer and sale, trading, and management of digital assets, and where the products are securities, examine for regulatory compliance.”

In this announcement though, the OCIE Director Pete Driscoll has said:

“As markets evolve, so do risks and potential harm to investors. OCIE continually works to adjust its examination focus areas to target these risks and publishes its annual priorities to communicate where we see the potential for increased risk and related harm. We hope that this transparency helps firms evaluate and improve their compliance programs, which ultimately helps protect investors.”

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!