On March 24th, COINOTAG News reported that the U.S. Securities and Exchange Commission (SEC) has initiated the “SEC Crypto 2.0” initiative with the formation of a new President’s Cryptocurrency Enforcement Team. This strategic development is aimed at ensuring that digital asset securities trading, whether on-chain or off-chain, aligns with the rigorous trade reporting requirements established for traditional securities. The SEC emphasizes the necessity to safeguard retail investors, provide legal clarity for financial transactions, and uphold market integrity while fostering financial innovation.
The SEC’s recommendations include a heightened focus on the oversight of off-chain transactions, particularly those involving trading platforms that facilitate activities related to digital asset securities. Furthermore, the SEC seeks to enhance trade reporting protocols, indicating that amendments to the Securities Exchange Act rules are required to ensure the timely reporting of all transactions classified as digital asset securities. In a collaborative effort, the SEC plans to establish a cross-agency digital asset trade repository (DART) in conjunction with the Commodity Futures Trading Commission (CFTC) to oversee and regulate these transactions effectively.