The US. Securities and Exchange Commission (SEC) has created a new post at the senior level to oversee the regulation of crypto sphere.
According to the release, Ms. Valerie A. Szczepanik will hold the position of Senior Advisor (Digital Assets) and Associate Director (Corporation Finance). She is responsible for coordinating all of the SEC offices and divisions with respect to applying the US security laws for the upcoming digital asset technologies as well as innovations such as cryptocurrencies and initial coin offerings (ICO).
In her previous stunt at SEC, she headed distributed ledger group. She also took part in the Consensus conference held in New York. She said the protection of the investors should be foremost for any industry such as the crypto to flourish.
She has issued an official statement on her stunt at SEC. She will play a vital role to promote orderly, fair, and efficient markets. She will also facilitate the formation of capital and ensure the protection of the investors mainly street investors.
Jay Claton, Chairman at SEC, while responding to the appointment of Szczepanik said she is the right person for coordinating the efforts of SEC in this area that has both risk and promise.
Since cryptocurrencies are treated as securities, they are now under the jurisdiction of SEC. According to Howey Test, a 70 year old, security means an investment of a certain amount in an enterprise and that should offer rich dividends to the investor.
Chairman of SEC Stresses the Need to Differentiate ICO and Major cryptocurrencies
Clayton, Chairman of US SEC, during a CFTC senate and US SEC hearing in February stressed to need to differentiate between major cryptocurrencies including Ethereum (ETH) and Bitcoin (BTC) and the ICO, which is considered as a security. The US regulators are debating on mainly ETH because they consider it as a security.
The ICO offering in 2014 is being treated as an unregistered security. The role of SEC is probe continuously against the ICOs. According to a recent probe in February 2018, it has ordered the closure of several unregistered securities in the Initial coin offerings space.
SEC is putting in considerable efforts to increase awareness about the potential risks involved in securities to the investors.