In an article published by MarketsMedia, Jina Choi and Susan Gault-Brown discussed the Securities and Exchange Commission’s (SEC) recent enforcement actions addressing crypto assets.
The SEC began from a standing start, according to Jina. “My recollection of Chairman Jay Clayton’s nomination hearings in 2017 was that there was no talk about crypto,” she said, noting that it wasn’t until two months after the start of his tenure that the SEC was off to the crypto-regulation races. “In that first year…[the Division of Enforcement] brought about a dozen cases that generally were alleged fraudulent offerings conducted by the defendants and respondents. You also saw recidivists that were fraudsters in a previous life who found the crypto space.”
Susan added that the SEC’s growing experience with the crypto products has also been a boon for issuers, though says it’s still too early to know precisely how long it will take the SEC to approve a new digital asset. “It depends on some things,” she said. “Do you need relief? Do you need a no-action letter or an exemptive order to take your product to market or into registration?”
Read the full article.