Future SEC crypto regulations. Digital assets will face levels of scrutiny similar to traditional securities.
The Securities and Exchange Commission of EE. UU. (SEC) published an 8 – page document detailing the framework in which the agency will examine investment in digital assets.
By enforcing regulatory compliance in areas ranging from custody, accounting, registration requirements to conflict of interest protocols, the SEC has made clear to traders, brokers and investment advisers that digital assets will face levels of scrutiny similar to traditional values.
To that end, the SEC stated that “inadequate anti-money laundering procedures, controls and documentation exist” due to the decentralized nature of many digital assets. And for firms registered with the Financial Industry Regulatory Authority (FINRA), they will require strict Know Your Customer (KYC) procedures in accordance with FINRA Rule 2090.
In its investigation, the SEC found that many traditional financial practices are being reapplied to digital investments . And furthermore, new concerns have arisen due to fundamental differences between asset classes. Questions such as how much control an investment firm should have over its clients’ private keys are one of the many novel questions that arise.
Officials framed the release of the document as a reminder of the risks that can be associated with digital assets and the need for compliance frameworks to protect the shared interests of market participants.
Future SEC crypto regulations. Digital assets will face levels of scrutiny similar to traditional securities.
The Securities and Exchange Commission of EE. UU. (SEC) published an 8 – page document detailing the framework in which the agency will examine investment in digital assets.
By enforcing regulatory compliance in areas ranging from custody, accounting, registration requirements to conflict of interest protocols, the SEC has made clear to traders, brokers and investment advisers that digital assets will face levels of scrutiny similar to traditional values.
To that end, the SEC stated that “inadequate anti-money laundering procedures, controls and documentation exist” due to the decentralized nature of many digital assets. And for firms registered with the Financial Industry Regulatory Authority (FINRA), they will require strict Know Your Customer (KYC) procedures in accordance with FINRA Rule 2090.
In its investigation, the SEC found that many traditional financial practices are being reapplied to digital investments . And furthermore, new concerns have arisen due to fundamental differences between asset classes. Questions such as how much control an investment firm should have over its clients’ private keys are one of the many novel questions that arise.
Officials framed the release of the document as a reminder of the risks that can be associated with digital assets and the need for compliance frameworks to protect the shared interests of market participants.