SEC has revealed its priorities for examinations in 2020 with a focus on digital assets listed as a priority.
The newly drafted priorities largely focus on the self-regulating entities, including the cryptocurrency exchanges and other cryptocurrency-related organizations in general.
SEC crypto priorities
With the blink of an eye, 2019 has passed, and it hasn’t been so with the lack of regulatory drama at the US Securities and Exchange Commission (SEC). The agency has been working on crypto regulation and has seen its share of issues and problems across the 12 months. The SEC has maintained a strict stance towards crypto regulation, but now it seems to prefer a kinder approach towards the sector.
SEC has set certain goals or priorities for the crypto industry in 2020. As observed by Twitter user Katherine Wu, through SEC crypto priorities the authority wants to introduce a certain degree of order in the sector with these six crypto priorities.
SEC crypto priorities: main points
The first point made by the SEC was to introduce investment suitability. The SEC would probe ventures and projects to test whether it contains a high risk that could harm users. The increased level of monitoring would allow it to rid the markets of exit scams and other fraud projects.
Secondly, the SEC would crypto activity records would be carefully examined to test whether the standards are being maintained similar to other sectors of industry.
Third, the SEC would maintain the security of funds by keeping a record of custodial services and exchanges, considering that the use of such services has increased significantly in recent years.
Fourth, the SEC has decided to maintain a proper and regulated system of asset pricing. The system would regulate asset valuation and allow SECto to protect the markets from pump-and-schemes and other illegal activities.
Fifth, the SEC would conduct compliance programs and controls to regulate the markets while giving the green light to a greater number of projects.
Last but not least, all employees of broker-dealers would need to report outside business activities. The rule would also be implemented in the crypto sphere.
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