The post SIFMA Urges SEC To Establish Clarity on Crypto Regulatory Approach appeared first on Coinpedia Fintech News
SIFMA (Securities Industry and Financial Markets Association), a US trade association for securities firms, banks, and asset management companies, called on the Securities and Exchange Commission (SEC) to establish clear rules for crypto. On Thursday, the platform met with SEC officials to discuss digital asset issuance, commodities, and tokenized securities.
Need for Consistent and Progressive Crypto Rules
According to the memo, SIFMA urged the SEC to establish consistent and progressive rules for crypto and a clear regulatory approach for platforms involved in digital assets. SIFMA also encouraged the SEC to establish innovative approaches that match the current technological advancements.
It also suggested that the SEC take a ‘holistic approach’ to incorporate— technological updates, classification of securities and digital commodities, open development of digital securities with transparency, and provision of cross-border applicability in the crypto landscape.
Key Highlights of SIFMA’s Meeting with the SEC
- The initiative aims to integrate traditional finance (TradFi) with the crypto space, with major crypto assets like Bitcoin (BTC) and Ethereum (ETH).
- SIFMA also seeks to promote regulatory clarity with consistent and progressive crypto rules to foster innovation and facilitate merging TradFi into the crypto market in the US.
- The effort also aims to establish a unified regulatory approach for issuance, custody, and trading of crypto assets.
- SIFMA also highlighted that the SEC should ensure the functions of— exchange and broker-dealer, trading and custody, promoting competition and compatibility of service providers— in digital commodities, and tokenized securities.
Promoting the Adoption of Digital Assets
SIFMA, holder of nearly 90% of the US financial market share, noted the growing demand of TradFi players to adopt digital assets into their products and services. So, it proceeded to establish legal clarity on the regulatory approach for cryptocurrency. SEC Chairman Paul Atkins emphasized the necessity of establishing clear rules in crypto, he said–
“To establish clear rules of the road for the issuance, custody, and trading of crypto assets, aiming to protect investors while encouraging responsible innovation.”
Final Thought
SIFMA continues to develop and encourage the regulatory framework for digital assets in the US. This move comes at a time when the nation is already at its peak of embracing digital assets by implementing a series of new laws. Despite the regulations, the approach lacks legal clarity, which will probably be resolved with with SIFMA proposal.
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