#CryptoRoundTableRemarks The US Securities and Exchange Commission (SEC) has been hosting a series of roundtable discussions to explore the regulatory framework for crypto assets. Here are some key points from the remarks made by SEC officials:
- *Tokenization*: The SEC is examining the potential benefits of tokenization, including increased operational efficiency, transactional transparency, liquidity, and accessibility. Tokenization could also enable faster settlement and greater investor opportunities.
- *Regulatory Clarity*: The SEC is working to provide legal clarity on issues such as:
- *Qualified Custodians*: Updating custody rules to accommodate crypto assets and blockchain technology.
- *Special Purpose Broker-Dealers*: Revising the framework for special purpose broker-dealers to make it more workable for market participants.
- *Crypto Asset Trading*: Exploring ways to modernize the Alternative Trading System (ATS) regulatory regime to better accommodate crypto assets.
- *Investor Protection*: The SEC is prioritizing investor protection and warning investors about the risks associated with crypto assets, such as:
- *Lack of Transparency*: Investors may not realize how their crypto investments are held or protected.
- *Custody Risks*: Investors may not understand that their crypto assets may be treated as property of the exchange in a bankruptcy proceeding.
- *Insurance*: Investors may not be aware that their investments are not covered by FDIC or SIPC insurance.
- *Smart Contracts*: The SEC is exploring the potential benefits of smart contracts, including automating dividend and interest payments, and enabling more efficient settlement processes.
- *DeFi Integration*: The SEC is working to address the challenges of integrating DeFi with traditional securities markets, including issues related to transfer agent rules and National Market System requirements.¹ ² ³