Welcome to SEC Roundup, a bimonthly video sequence by former Securities and Trade Fee senior trial counsels Nick Morgan and Tom Zaccaro, founders of the nonprofit advocacy group Investor Selection Advocates Community.
On this episode, former SEC Commissioner Troy Paredes and Cooley Particular Counsel Rodrigo Seira focus on the fee’s evolving method to monetary innovation and digital asset regulation, providing insights useful to funding advisors navigating the altering regulatory panorama.
The dialog centered on the SEC’s renewed dedication to stakeholder engagement, showcased via its latest sequence of roundtables designed to handle jurisdictional questions and regulatory frameworks. This method marks a big shift from the earlier administration’s enforcement-focused technique, which Seira characterised as having “a really strained relationship” with progressive monetary applied sciences.
Paredes emphasised the fee’s present willingness to “embrace the promise and alternative” of economic innovation whereas nonetheless upholding core regulatory rules. “The fee is seeking to typically embrace the promise and alternative that the underlying expertise affords and what that innovation means within the context of securities markets,” he famous.
The SEC withdrew on Might 15 its earlier workers opinion on broker-dealer custody of digital asset securities. The withdrawal takes away the “scare” issue the announcement brought about when it got here out. Presumably an additional announcement or rulemaking will comply with. When the workers announcement first got here out, it was interpreted as an ominous suggestion that satisfying custody necessities for digital belongings might be unimaginable.
The SEC announcement instantly exemplifies the regulatory shift towards “custody” that Paredes and Seira focus on, highlighting the SEC’s transfer away from earlier inflexible approaches to develop extra technology-aligned frameworks for digital belongings.
