Welcome to SEC Roundup, a bimonthly video collection by former Securities and Trade Fee senior trial counsels Nick Morgan and Tom Zaccaro, founders of the nonprofit advocacy group Investor Alternative Advocates Community.
On this episode, former SEC Commissioner Troy Paredes and Cooley Particular Counsel Rodrigo Seira focus on the fee’s evolving strategy to monetary innovation and digital asset regulation, providing insights beneficial to funding advisors navigating the altering regulatory panorama.
The dialog centered on the SEC’s renewed dedication to stakeholder engagement, showcased by means of its latest collection of roundtables designed to handle jurisdictional questions and regulatory frameworks. This strategy marks a major shift from the earlier administration’s enforcement-focused technique, which Seira characterised as having “a really strained relationship” with revolutionary monetary applied sciences.
Paredes emphasised the fee’s present willingness to “embrace the promise and alternative” of monetary innovation whereas nonetheless upholding core regulatory ideas. “The fee is seeking to typically embrace the promise and alternative that the underlying know-how affords and what that innovation means within the context of securities markets,” he famous.
The SEC withdrew on May 15 its earlier employees opinion on broker-dealer custody of digital asset securities. The withdrawal takes away the “scare” issue the announcement prompted when it got here out. Presumably an extra announcement or rulemaking will comply with. When the employees announcement first got here out, it was interpreted as an ominous suggestion that satisfying custody necessities for digital property could possibly be inconceivable.
The SEC announcement straight 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 property.
