SEC Gives Crypto Dealers-Brokers a Christmas Gift in the Form of 5 Years Exemption from Action

United States Securities and Exchange Commission (SEC)

KANALCOIN NEWS –  The United States Securities and Exchange Commission (SEC) is reported to have given Christmas gift to dealer-broker companies this year. The reason is, the SEC will give freedom to dealer-broker companies that meet certain conditions.

On Wednesday (23/12/2020) local time, the SEC announced ‘Christmas gifts’ to all dealer-broker companies that meet certain conditions. Reportedly, the SEC is responding to complaints from the cryptocurrency industry which has so far reaped the pros and cons.

The SEC ensures that all dealer-broker companies that meet their requirements will be free from prosecution for the next five years. This policy was taken by the SEC in response to long-term complaints from related industries.

The complaint in question is the lack of clarity regarding regulations regarding who will oversee and regulate the trading of securities tokens. In its statement, the SEC gave conditions to dealer-broker companies who wanted to get a “Christmas gift” from them.

“In particular, the position of the Commission (SEC), which will expire after a period of five years from the date of publication of this statement, is that dealer-brokers operating under the circumstances set out in section IV will not be subject to enforcement action by the Commission.” read the SEC statement as reported by from Cointelegraph.

‘The circumstances in section IV referred to in the SEC statement appear to be in the form of a number of conditions previously set by the SEC. At the very least, dealer-broker companies that wish to be exempted from law enforcement action must fulfill two conditions.

First, the company must make security tokens the main operational focus of the company it runs. Second, the company must have done due diligence in terms of cybersecurity and transparency with clients.

The security and transparency in question is that companies must ensure that every customer or client they work with knows that the brokers they will choose actually handle digital securities assets.

Apart from that, the SEC also discussed other issues related to crypto digital asset trading. One of them is regarding securities token transactions.

In their statement released, the SEC indicated a desire for investors to be allowed to use non-security tokens as a means of payment for security tokens. The non-securities tokens in question are like bitcoin and ether.

Several weeks earlier, the SEC had received a letter from congress signed by a number of members. In the letter, congress asked the SEC to discuss and clarify issues related to cryptocurrencies.

Until now, the SEC is considered to be too slow in the process of handling regulations related to cryptocurrencies and blockchain. In fact, the development of technology, especially blockchain, is currently quite rapid.

The SEC even made several policies that were considered to have worsened the atmosphere of problems related to cryptocurrencies. An example of the policy in question is a series of no-action letters for token projects.


Muhammad Zaki Fajrul Haq
Author: Muhammad Zaki Fajrul Haq

Follow me at @mzfajrulhaq (Instagram) or @ZakiFajrul (Twitter).

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