The US Securities and Exchange Commission (SEC) commissioner Mark T. Uyeda has called for customized S-1 registered forms for Crypto assets.
The commissioner highlighted the need for clarity in cryptocurrency regulation. He believes the agency could improve its regulatory approach with a specific framework to accommodate Crypto assets.
He also said the agency should indicate which assets are securities to accommodate different practices in other jurisdictions.
The SEC Should Establish Customized S-1 Forms For Crypto Assets
SEC Commissioner Mark T. Uyeda proposed that the agency establish customized S-1 forms for cryptocurrencies on Tuesday, September 3, at the Korea Blockchain Week 2024 event in Seoul, South Korea.
According to Uyeda, the SEC should specify a framework for crypto asset regulation to ensure clarity. He also believes the regulator should indicate the asset classes that fall within the securities category and streamline its regulatory jurisdiction.
For emphasis, an S-1 form is part of the registration documentation to the SEC from potential US issuers of a new securities product. The form contains certain disclosures, including cash flows and income statements.
Further, Uyeda explained the SEC’s standard registration modalities. He noted that the agency has previously worked with some product sponsors. In previous works, the SEC established certain registration requirements for specific financial products like registered index-linked annual incomes.
However, Uyeda pointed out that the agency has yet to apply the same approach to cryptocurrency securities. So, he wondered why the SEC should follow the same pattern for cryptocurrency regulation.
Uyeda stated: “We have the flexibility to do that, and that was in part, expressing my frustration in that we have not done more of that to accommodate sponsors of these types of digital assets that they have concluded as securities.”
Uyeda Reacts To Sec’s Multiple Crypto Lawsuits And Calls For Regulatory Clarity
The SEC has initiated several lawsuits against crypto projects and firms, including Ripple, Coinbase, Binance, Kraken, etc. Most of these legal battles centre on the agency’s classification of crypto assets as securities.
On its part, Ripple debated that the SEC has failed to establish clarity in its regulatory approaches for crypto assets. Coinbase also requested that the SEC set a clear regulatory framework, clarifying which assets are securities and why.
Uyeda reacted to the agency’s stance to refute Coinbase’s rulemaking petition. He indicated the need for clarification from the SEC in establishing which crypto assets are or are not securities.
Further, Uyeda disclosed that Gensler is the final authority in the agency when it comes to including new items to the regulatory agenda. However, Gensler didn’t include Cryptocurrency tokens among the over 50 new items he added to the regulatory agenda during his tenure.
He believes that the SEC Chair Gensler or future successors could push for clarity and end all regulatory uncertainty. Also, Uyeda called for a positive change in some legislation or rulemaking.
Moreover, the commissioner reiterated that the SEC needs to consider other global jurisdictions and their regulatory practices for cryptocurrencies. He highlighted Japan, the EU, and South Korea as potential models.
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.
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