The Blockchain Association, a U.S.-based crypto advocacy group, has lauded recent comments by SEC Commissioner Mark Uyeda, praising his “nuanced, innovation-forward approach” as essential for the cryptocurrency industry. This commendation comes in response to Uyeda’s critique of the SEC’s current approach to crypto disclosure rules, which he described as “problematic.”
Alexander Grieve, head of government affairs at crypto venture capital firm, Paradigm, noted on social media that this was Uyeda’s first public call for a tailored disclosure regime for crypto assets, stating, “The SEC under a different admin would be a very different place.”
Uyeda’s criticisms were revealed in a footnote of a July 1 statement on the SEC’s website, initially addressing new rules for Registered Index-Linked Annuities (RILA). In his comments, Uyeda advocated for updating Form S-1, used for public offerings and new security registrations, to better accommodate the unique aspects of digital assets.
“Many of these issuers and crypto digital assets have characteristics for which Form S-1 may technically require information that is not relevant or applicable, but does not require certain information that may be material,” Uyeda stated. He added that the current approach “neither facilitates capital formation nor protects investors.”
This development comes against a backdrop of ongoing tensions between the crypto industry and regulatory bodies. Just days before Uyeda’s comments, on June 27, 2024, cryptocurrency exchange Coinbase filed a lawsuit against the SEC and the Federal Deposit Insurance Corporation (FDIC). The lawsuit accuses the agencies of failing to comply with Freedom of Information Act (FOIA) requests and attempting to exclude the crypto industry from the banking sector.
Coinbase’s complaint, filed in the U.S. District Court of Columbia, also highlighted the lack of clear guidance on applying securities laws to crypto, particularly regarding Ethereum’s transition to a Proof-of-Stake consensus algorithm.
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