March 27, 2023

SEC in 2020 will strengthen supervision of the cryptocurrency market

US Securities and Exchange Commission (SEC) Compliance Department (OCIE) introduced cryptocurrencies on the 2020 oversight priority list.

In a new document released by OCIE,emphasizes that the emerging digital asset market may pose a risk to retail investors who do not always understand the difference between such assets and traditional commodities and securities.

“Due to these risks, OCIE will continueidentify and verify market participants registered in the SEC and working in this field. Checks will be as follows: investment suitability, portfolio management methods and trading strategies, security of client funds and assets, pricing, effectiveness of programs and means of monitoring compliance with regulatory requirements, supervision of employees outside the company, ”the document says.

OCIE first drew attention to cryptocurrencies in2018 year. Then, in the corresponding document, officials noted the need for checks of cryptocurrency companies. In 2019, the regulator has more clearly expressed the priority of cryptocurrency supervision. In 2020, OCIE reiterated the 2019 goals by adding a clause stating that it is necessary to monitor employee activity even after hours.

Recall that yesterday a court in the Southern District of New York rejected the SEC's petition for information on banking operations and the use of funds raised by the TON project in the framework of the ICO.