At a gathering with staffers for SEC Commissioners Hester Peirce and Mark Uyeda, the Digital Chamber of Commerce’s Token Alliance launched an formidable coverage agenda geared toward overhauling the SEC’s regulatory method to digital belongings.
🚨NEW: At a gathering with staffers for @SECGov commissioners @HesterPeirce and Mark Uyeda this week, the @DigitalChamber’s Token Alliance included denouncing the 2018 #Hinman speech as a Day 1 precedence for the Company Finance division, citing its lack of relevance to the Howey… pic.twitter.com/5RACe4vBNL
— Eleanor Terrett (@EleanorTerrett) December 18, 2024
The proposals, spanning the primary 90 days of Donald Trump’s new administration, highlights speedy and sweeping adjustments to reset the company’s relationship with the cryptocurrency sector.
Day 1 Agenda: A Contemporary Begin for Crypto Regulation
The Day 1 agenda for the SEC’s Company Finance division focuses on establishing readability and fostering innovation:
- Rescind the 2019 Framework for “Funding Contract” Evaluation of Digital Belongings: Criticized for its broad and impractical method, the framework has left market members with out actionable steerage or help.
- Denounce the 2018 Hinman Speech: The Chamber referred to as for the SEC to formally state that the speech, which has induced confusion and market distortion, is just not company steerage.
- Subject No-Motion Letters and Fee Statements: The Chamber urged the SEC to make clear a number of key areas, together with:
a. Blockchain community capabilities that aren’t securities transactions.
b. Provisional definitions for when digital belongings implicate securities legal guidelines, providing readability past the Howey check.
c. Categorizing particular digital belongings like native tokens, stablecoins, and NFTs as non-securities.
d. Offering transparency on why Bitcoin and Ethereum have been deemed non-securities, making a constant framework for different tokens.
e. Providing readability round staking actions that don’t represent securities transactions. - Start Rulemaking on a Token Secure Harbor Proposal: This may set up clear guidelines for when token gross sales are not thought-about funding contracts and the networks are deemed decentralized.
- Set the Tone for Management: The Interim Chair and incoming Chair Paul Atkins have been inspired to problem public statements resetting the SEC’s relationship with crypto stakeholders and outlining blockchain-related priorities.
A few of the Agendas for First 30 Days
- Issuing provisional guidelines for broker-dealers to commerce and custody digital belongings.
- Establishing no-action aid for broker-dealer operations utilizing blockchain for funds.
- Initiating reforms in enforcement to focus solely on circumstances involving precise fraud or loss whereas dismissing theory-based litigation.
- Increasing funding choices for registered funds and recognizing self-custody of digital belongings till certified custodians are established.
Some Agendas for Days 30–90:
- Finalizing the definition of when digital belongings implicate securities legal guidelines, in coordination with the CFTC, Congress, and the Administration.
- Proposing Token Secure Harbor guidelines to offer clear pathways for decentralized community recognition.
- Establishing particular disclosure requirements tailor-made to digital belongings that implicate securities legal guidelines.
- Offering a transparent registration path for digital asset-related companies, together with token issuers.
- Approving extra spot ETF purposes for belongings like SOL, XRP, and BITW.
- Revisiting necessities for nationwide securities exchanges to record digital asset ETFs, aiming to align them with world requirements.
Additionally Learn: Coinbase Secures Win In opposition to BiT International in Lawsuit Over Wrapped Bitcoin
