U.S. SEC Plans to Promote Regulatory Rule Reforms: Covering Cryptocurrency Asset Classification and Investment Contract Recognition Framework

Odaily Planet Daily reports that Jim Moloney, head of the SEC’s Company Finance Division, stated that they are working to accelerate the development of regulatory rules. According to Chair Paul Atkins’s priorities, the department will primarily focus on reforming crypto assets. Jim Moloney said that the Company Finance Division is preparing to submit two key proposals to the commission regarding crypto assets: first, providing explanatory guidelines to clarify the classification of crypto assets (Taxonomy) and describing a framework for determining when crypto assets are subject to investment contract constraints; second, developing a reasonable regulatory structure proposal for the issuance and sale of securities constrained by investment contracts. Additionally, the department will continue to provide market clarity through statements and no-action letters. Jim Moloney also mentioned that other ongoing efforts by the SEC include implementing the Holding Foreign Companies Accountable Act (HFIAA), creating a semi-annual reporting option instead of quarterly reports, and reducing regulatory burdens under Regulation S-K, including disclosures related to executive compensation.

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