U.S. SEC Setting up New Office to Look After Crypto Filings
The U.S. Securities and Exchange Commission (SEC) is set to create a new office to handle the review of company filings related to crypto assets. Named the Office of Crypto Assets, it will be under the SEC's Division of Corporate Finance as part of its Disclosure Review Program (DRP).
In a press release, the SEC stated that assigning the review of filings involving crypto assets to its own office will enable the DRP to better focus resources and expertise on addressing the unique and evolving crypto assets-related filing review process.
Along with the Office of Crypto Assets, the SEC also announced an Office of Industrial Applications and Services which is to handle the review of filings related to non-pharma, non-biotech, and non-medicinal products companies currently assigned to the Office of Life Sciences.
Both offices are expected to come into operation this fall. According to Renee Jones, Director of the Division of Corporation Finance, the regulator expects the two offices to help the SEC in its efforts to protect consumers and promote capital formation in the two sectors that have had remarkable growth recently.
"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," Jones said.
The two offices will join seven existing industry-specific filings review units under the Division of Corporate Finances Disclosure Review Program.
SEC not relenting from inviting crypto firms to register with it
The announcement is coming shortly after SEC chairman, Gary Gensler, remarked that crypto projects and firms need to come under the supervision of the commission by registering.
While giving a speech at SEC Speaks organized by the Practising Law Institute, he noted that the vast majority of over 10,000 tokens in the crypto market are securities under the U.S.'s age-old Securities Act regardless of the new technology they are issued with.
"The investing public benefits when they receive disclosures and related protections about a project’s prospects and business. The investing public benefits when intermediaries are registered and overseen," he added.
Back in May, the SEC's Division of Enforcement increased the staff strength of its Crypto Assets and Cyber Unit by almost double. These moves have been coming on the back of massive volatility in the crypto market and a growing number of fraud cases in the crypto industry which the SEC is determined to get a hold of.