U.S. SEC Proposes Regulatory Rule Reform: Covers Cryptocurrency Asset Classification and Investment Contract Determination Framework

Odaily News According to a statement by Jim Moloney, head of the U.S. SEC's Division of Corporation Finance, the division is committed to rapidly advancing regulatory rulemaking. Following the priorities set by Chairman Paul Atkins, the division will focus primarily on cryptocurrency asset reform. Jim Moloney stated that the Division of Corporation Finance is preparing to submit two key proposals regarding cryptocurrency assets to the Commission: first, to provide interpretive guidance offering clear classification (Taxonomy) for cryptocurrency assets and describing a framework for determining when a cryptocurrency asset is subject to an investment contract; second, to develop a proposal for a reasonable regulatory structure governing the issuance and sale of such securities for cryptocurrency assets subject to investment contracts. Furthermore, the division will continue to provide market clarity through statements and no-action letters. Jim Moloney also mentioned other ongoing work at the SEC includes: implementing the Holding Foreign Insiders Accountable Act (HFIAA); creating a reporting option for semi-annual instead of quarterly reports; and reducing regulatory burdens under Regulation S-K, including executive compensation disclosures.