[ad_1]
The US Securities and Exchange Commission (SEC) Office of Compliance Inspections and Examinations (OCIE) listed the cryptocurrency market as one of the six focal points of its compliance monitoring activities for 2019.
Spotlight on the cryptocurrency market
According to a report entitled "2019 Exam priority"OCIE says it intends to shine the spotlight on the future of cryptocurrency." An excerpt from the cryptocurrency report states:
Given the significant growth and the risks presented in this [the crypto] market, OCIE will continue to monitor the offer and sale, trading and management of digital assets and, where the products are securities, will review regulatory compliance. In particular, through high-level surveys, OCIE will take measures to identify market participants who offer, sell, negotiate and manage these products or consider or actively seek to offer these products and then assess the extent of their activities.
To this end, the OCIE intends to examine the activities of companies operating in the digital goods market. This examination will cover the sale, trading and management of cryptocurrency activities. The OCIE also plans to pay particular attention to the encrypted securities considered.
Commenting on the 2019 approach, Pete Driscoll, Director of OCIE, He said:
OCIE is firmly committed to protecting investors, securing market integrity and supporting responsible capital formation through risk-focused strategies that improve compliance, prevent fraud, monitor risks and inform policies.
Identifying the virtual currency market as a priority is not a new development for the OCIE. As early as 2018, the emerging market also formed part of the The OCIE agenda. However, the mandate for 2019 seems to be an 'extension of the goal for last year, focused primarily on risks and security.
Too much regulation?
The expansion of OCIE's attention to digital resources comes at a time when US federal lawmakers are trying to do so to establish a separate regulatory framework for cryptocurrencies. Some commentators believe that the SEC is over-regulating the sector, slowing the rate of innovation in the country regarding digital resources.
In December 2018, Reuters reported that the GOP members were frustrated by the SEC leadership over their position on most ICOs as titles. This new OCIE report that expands its attention to scrutiny could exacerbate these concerns. Meanwhile, for the SEC, the Commission continues to declare that strict laws create a safer market.
What do you think of the SEC's focus on cryptocurrency in 2019? Let us know your thoughts in the comments below!
Image courtesy of SEC.gov, Shutterstock
