SEC to Establish New Office to Handle Cryptocurrency Filings
The Securities exchange commission (SEC) established a new office to handle cryptocurrency filling. To provide specialized support to the seven offices responsible for reviewing cryptocurrency issuer filings, the Securities and Exchange Commission (SEC) opened two new offices this fall to take on the influx of filings from cryptocurrency issuers.
Under the Division of Corporation Finance’s Disclosure Review Program (DRP), the SEC plans to add two offices solely devoted to crypto assets and industrial applications and services — the Office of Crypto Assets and the Office of Industrial Applications and Services.??
As a result, the Office of Crypto Assets will allow the DRP to devote its resources to file review challenges by taking over the department's efforts to examine crypto filings.?
The director of the Division of Corporation Finance, Renee Jones, 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.”?
Non-pharma, non-biotech, and non-medical products will now be overseen by the Office of Industrial Applications and Services.
Cryptocurrencies and other digital assets have grown exponentially in recent years, making it difficult for policymakers to keep track of risks as they become more closely linked to financial regulations. Additionally, allegations of money laundering against some crypto firms, as well as violations of consumer data privacy, have affected demand.
DRP could build better-specialized expertise by transforming some of these companies into a separate group in light of the industry's recent growth.
CBW - External Analyst