The U.S. Securities and Exchange Commission (SEC) has just released detailed guidelines clarifying regulations for cryptocurrency exchange-traded products (ETPs), ensuring transparency and safety for investors.
MAIN CONTENT
The SEC requires cryptocurrency ETP registration and compliance with federal laws to protect investors.
Detailed guidelines on how to calculate net asset value (NAV), risks, and fund management.
The SEC collaborates with cryptocurrency exchanges to develop listing standards to simplify the approval process.
What is the SEC's perspective on transparency in cryptocurrency assets?
The SEC emphasizes the important role of transparency in building a clear legal framework for cryptocurrency ETP products. According to the official guidelines, ETP issuers are required to register their products under the Securities Act of 1933 and the Securities Exchange Act of 1934.
In addition, according to the SEC, cryptocurrency ETP issuers must also comply with federal anti-fraud regulations in securities law, even if the products are not registered as investment companies under the Investment Company Act of 1940.
Is this guidance issued by the SEC really necessary?
The increasing popularity of Token ETPs, especially with the involvement of large investment funds in spot Bitcoin ETFs, drives the SEC's determination to establish stricter regulatory rules for cryptocurrencies. Reporting suspicious activities in Token ETPs is implemented to mitigate risks for the market.
What are the highlights in the SEC's cryptocurrency ETP guidelines?
The guide focuses on describing the objectives of trust fund management and the rules for tracking assets, issuer policies, authority, and procedures for handling events such as splits, airdrops, or similar situations.
At the same time, the SEC also specifies the risks related to liquidity, cybersecurity, technology, legal regulations, and taxes. The method of calculating NAV is detailed along with the roles of executive members such as Directors, senior management officers, and key staff in managing cryptocurrency ETPs.
The issuance of the guidelines helps ensure transparency and better protect investors' interests in the increasingly developing market of Token ETP products.
Gary Gensler, SEC Chairman, 01/07/2025
How is the SEC cooperating with cryptocurrency exchanges?
The SEC is developing a common listing standard for ETF Tokens to shorten the approval process under Rule 19b-4, enabling cryptocurrency exchanges to quickly bring qualified ETP products to market after a 75-day review.
The SEC's goal is not only to protect investors but also to maintain fair competition and market stability, as well as to promote more effective capital raising in the cryptocurrency ecosystem.
This draft guideline is a significant turning point in building trust and transparency for cryptocurrency ETP products in the U.S. market.
Mary Jo White, former SEC Chair, speaks at the Blockchain conference in 2024
Frequently Asked Questions about SEC Guidelines for Cryptocurrency ETPs
What does the SEC require from cryptocurrency ETP issuers? Issuers must register their products under the Securities Act of 1933 and 1934, complying with federal anti-fraud regulations. What risks are highlighted in the SEC's guidelines related to ETPs? These include liquidity risks, cybersecurity, technology, legal regulations, and taxes. Does the SEC assist in the licensing process for Token ETPs? Yes, the SEC is collaborating with cryptocurrency exchanges to implement common listing standards, shortening the approval time. How does this guidance affect individual investors? It helps increase transparency and protect interests, reducing risks in trading Token ETPs. What must Token ETPs report to the SEC? They must report suspicious activities to detect and prevent potential risks.
Source: https://tintucbitcoin.com/crypto-etp-duoc-sec-huong-dan-moi/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated with the latest news about the cryptocurrency market and not miss any important information!
