The U.S. Securities and Exchange Commission (SEC) is gradually relaxing its stance on cryptocurrency under President Trump, moving towards reforming laws to align with the evolving digital market.
The SEC focuses on establishing clear, flexible regulations to protect investors and promote the healthy development of the cryptocurrency industry in the United States.
MAIN CONTENT
The SEC believes that most Tokens are not securities and only a few special cases will be applicable.
The SEC's new policy will include clear standards and safe harbors for Token issuance.
The collaboration between the SEC and Congress aims to build a modern, cryptocurrency-friendly legal framework.
How does the SEC view most Tokens in the cryptocurrency market?
SEC Chairman Paul Atkins asserted that only a small percentage of Tokens will be considered securities. He emphasized that Tokens are often not securities when assessed in isolation.
Speaking at the Wyoming Blockchain Symposium, Mr. Atkins explained that the classification of a Token as a security depends on the manner and context of its issuance and sale. He suggested considering the overall package of accompanying products rather than just evaluating the Token itself.
How the SEC defines and classifies Tokens
Mr. Atkins stated that the assessment of whether a Token is a security should be based on market realities and the role of the Token within a broader system. This perspective aims to limit the mechanical application of securities laws to all Tokens.
This perspective signals a more proactive step from the SEC in monitoring and regulating the cryptocurrency market, helping to minimize unnecessary constraints on Tokens that do not possess traditional investment characteristics.
How does the SEC want to regulate the cryptocurrency market?
Mr. Paul Atkins emphasized that the SEC's responsibility is to create a transparent legal framework that can flexibly adapt to the rapid development of the cryptocurrency industry.
He shared on social media X that the goal is to build a legal framework that protects the market from misconduct while being able to maintain effectiveness over time, aligning with technological development needs.
"We need to create a framework to ensure that the crypto market does not become a place prone to legal misconduct. I hope to collaborate with departments in the government and Congress to complete this task."
Paul Atkins, Chairman of the SEC, speaking at the Wyoming Blockchain Symposium, July 2023
What actions is the U.S. Congress taking to refine cryptocurrency laws?
While the SEC promotes internal policies, Congress has passed the CLARITY Act and is preparing to propose market structure legislation in September to synchronize cryptocurrency regulatory policy.
In response to these efforts, the SEC initiates 'Project Crypto' with initiatives including standards for determining security Tokens, safe harbors for Token issuance, updating custody requirements for organizations, and licensing multi-service applications.
The significance of 'Project Crypto' in the new regulations
This project reflects the SEC's strategic shift towards modernizing securities laws to better align with new technologies. The update of the laws aims to support the synchronized and transparent development of the cryptocurrency market, providing players with legal certainty.
The expansion of safe harbors and new standards provides better protection while avoiding excessive hindrance for cryptocurrency developers and investors.
How is the cryptocurrency-friendly policy under President Trump reflected?
The SEC has coordinated all internal units to implement a strategy towards a more favorable legal environment for cryptocurrency, in accordance with the requirements from President Trump.
In particular, the SEC is reevaluating regulations on cryptocurrency custody for brokers, asset managers, and advisors to create greater certainty and transparency for digital asset transactions and management.
"The purpose of this regulation is to provide greater clarity and certainty for all market participants."
Paul Atkins, SEC Chairman, in an interview with Fox Business, June 2023
Frequently Asked Questions
Do most Tokens get classified as securities by the SEC?
The current view is no, only a few specific Tokens will be classified as securities based on the manner of issuance and accompanying service packages.
What is the SEC doing to update cryptocurrency laws?
The SEC launches 'Project Crypto' to introduce clear standards, safe harbors for Token issuance, and regulate cryptocurrency custody for organizations.
What role does the U.S. Congress play in cryptocurrency regulation?
Congress has passed legislation such as the CLARITY Act to create a synchronized legal framework that aligns with the development of the cryptocurrency market.
How does President Trump influence cryptocurrency policy in the United States?
Trump's policy promotes a more cryptocurrency-friendly legal environment, encouraging the SEC and related agencies to reform laws to support the industry.
What plans does the SEC have for multi-service applications related to cryptocurrency?
The SEC plans to license a 'super app' that integrates trading and lending services with a valid license, thereby simplifying and clarifying operations.
Source: https://tintucbitcoin.com/chairman-sec-dismisses-token-ranking/
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