The US Securities and Exchange Commission (SEC) is set to move forward with digital asset policies after Congress failed to pass legislation that would have established a framework for regulating cryptocurrency at the agency and across other parts of government.
On Tuesday, the SEC will close public comment on its ‘Regulation Crypto Assets,’ a set of rules proposed in August intended to create what the agency called a “clear and fit-for-purpose framework for certain investment contracts involving crypto assets.” Over the 60-day period, the agency gathered about 140 comments from interest groups and individuals on rules and regulations related to a proposed safe harbor that would prevent token issuers from being considered “investment contracts,” as well as exemptions for companies permitting offerings up to a certain amount.
The Markets in Crypto Assets (MiCA) Crypto Alliance, a group established to help organizations looking to implement the EU framework on digital assets, largely supported the SEC’s proposed changes to disclosure requirements. The alliance recommended specific amendments to have the SEC better define “concepts and data structures specific to crypto assets and the disclosure requirements.”
Others, including SkyBridge Capital founder Anthony Scaramucci, said they would support the SEC’s proposed crypto rules. Scaramucci said the digital asset regulations responded to “organic adoption” and “represent a return to the Commission’s proper role” without citing inaction from Congress on the Digital Asset Market Clarity (CLARITY) Act. Six people submitted comments anonymously.
While many public comments praised the SEC’s efforts to advance crypto regulation or said they would be open to further discussion, some legal experts suggest the rules could be more easily overturned than an act of Congress. Both financial agencies overseeing aspects of the crypto industry, the SEC and the Commodity Futures Trading Commission, are also still understaffed at the leadership level.
Related: House Finance panel chair says regulator actions on crypto ‘fall short’ of CLARITY bill
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