SEC To Set Up Offices for Cryptocurrency Filings

The United States Securities and Exchange Commission (SEC) has announced that it is setting up a dedicated office to review crypto-related filings in the coming months.

The SEC has announced that it will set up offices for cryptocurrency filings soon and stressed the need to “provide greater and more specialized support” for crypto assets. Two offices are to be set up: an “Office of Crypto Assets” and an “Office of Industrial Applications and Services.” The two new offices will join the agency’s seven existing offices that “provide a focused review of issuer filing,” the SEC said. The agency noted that these offices are grouped by industry expertise and will fall under the agency’s Division of Corporation Finance’s Disclosure Review Program (DRP). The first office will be mainly for crypto assets, while the second will specialize in industrial applications and other services.

The Office of Crypto Assets will continue the work currently performed across the DRP to review filings involving crypto assets, the SEC said.

It added:

Assigning companies and filings to one office will enable the DRP to better focus its resources and expertise to address the unique and evolving filing review issues related to crypto assets.

Renee Jones, director of the SEC’s Division of Corporation Finance cited massive growth in the crypto market as one of the drivers that spurred the need for an office with a hands-on approach to specialised matters. She said:

The creation of these new offices will enable the DRP to enhance its focus in the areas of crypto assets, financial institutions, life sciences, and industrial applications and services and facilitate our ability to meet our mission.

The establishment of these new offices reaffirms the SEC's commitment to regulating cryptocurrencies. 

On Thursday, Chairman of the SEC, Gary Gensler said:

Of the nearly 10,000 tokens in the crypto market, I believe the vast majority are securities. Offers and sales of these thousands of crypto security tokens are covered under the securities laws.

Adding,

I’ve asked the SEC staff to work directly with entrepreneurs to get their tokens registered and regulated, where appropriate, as securities.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.