New Priorities in Crypto Compliance
The United States Securities Exchange Commission (SEC) is stepping up its game, and not just in the world of baking cookies. As announced on January 7, the SEC’s Office of Compliance Inspections and Examinations (OCIE) has decided to shake things up by adding fintech and digital assets to its focus list for the upcoming fiscal year. Why? Because new financial technologies are not just geeky jargon; they need some serious oversight.
The Changing Tide for Crypto
OCIE has taken a similar stance in the past, especially back in 2019, when they pledged to keep a watchful eye on trading and management of digital assets. Fast forward to today, and it looks like the SEC is softening its approach. This year’s announcement hints that they might actually start appreciating the positive sides of these financial technologies, rather than just brandishing the regulatory hammer. Perhaps they’re realizing that not all crypto is created equal?
The SEC’s Watchful Eye
The SEC has historically been a big player when it comes to initial coin offerings (ICOs), especially with those deemed as unregistered securities. Remember the drama surrounding Kik’s KIN token or Telegram’s GRAM offering? They certainly do! However, SEC Commissioner Hester Peirce is on a mission to find common ground, advocating for an approach that welcomes innovation rather than squashing it under piles of paperwork.
The Crypto Community’s Needs
As Peirce quipped, the “biggest thing the crypto community needs” is a roadmap to transition from securities offerings to utility token offerings without the usual regulatory headache. You know, a solution that allows creativity to thrive while keeping things above board. Who wouldn’t want that?
Government Agencies and Crypto: A Growing Relationship
In a world where crypto is more prevalent, it’s no shock that the U.S. government agencies are ramping up their interactions with the crypto world. On the very same day of the SEC’s announcement, Kraken (yes, the one with the giant squid logo) revealed a steep rise in requests from law enforcement for transaction investigations. It seems like the IRS has also refreshed its toolbox to track down cryptocurrencies for taxation purposes. Who says tax season can’t come with a side of crypto, right?
