It's time to update the SEC's disclosure process for crypto

SEC Commissioner Mark Uyeda wants to update the agency’s S-1 disclosure for cryptocurrency firms. His stance is a positive step toward progress.

Securities and Exchange Commission member Mark Uyeda suggested in a July statement that his agency had missed the mark with its approach to cryptocurrency, and proposed a shift in how the SEC handles S-1 requirements for crypto — the process by which companies publicly offer and distribute digital assets.

“Many of these issuers and crypto digital assets have characteristics for which Form S-1 may technically require information that is not relevant or applicable,” Uyeda noted in his statement. “This approach … is problematic because it neither facilitates capital formation nor protects investors. Consideration should be given to allowing variances from Form S-1 for crypto digital assets, similar to that given for fund and insurance products and other securities products.”

Such a shift would move the agency away from pure enforcement and toward constructive regulation, and offer a more viable path for digital-asset issuers seeking to comply with securities laws.

SEC Commissioner Mark Uyeda wants to update the agency’s S-1 disclosure for cryptocurrency firms. His stance is a positive step toward progress.
Securities and Exchange Commission member Mark Uyeda suggested in a July statement that his agency had missed the mark with its approach to cryptocurrency, and proposed a shift in how the SEC handles S-1 requirements for crypto — the process by which companies publicly offer and distribute digital assets.”Many of these issuers and crypto digital assets have characteristics for which Form S-1 may technically require information that is not relevant or applicable,” Uyeda noted in his statement. “This approach … is problematic because it neither facilitates capital formation nor protects investors. Consideration should be given to allowing variances from Form S-1 for crypto digital assets, similar to that given for fund and insurance products and other securities products.”Such a shift would move the agency away from pure enforcement and toward constructive regulation, and offer a more viable path for digital-asset issuers seeking to comply with securities laws.Read more