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With intensified regulatory oversight of cryptocurrencies, the SEC will launch a digital asset office

The U.S. Securities and Exchange Commission (SEC) is opening a new office with the exclusive purpose of assessing files pertaining to digital assets in light of the heightened attention that cryptocurrencies is receiving from international regulators and lawmakers.

According to a news statement issued by the SEC on Friday, the Division of Corporation Finance’s Disclosure Review Program (DRP), which is in charge of examining issuers’ corporate filings, will now include the Office of Crypto Assets.

The DRP will be able to “better focus its resources and expertise to address the unique and changing filing review concerns associated to crypto assets” thanks to the establishment of the office, according to the SEC.

The Office of Industrial Applications and Services is being established by the SEC at the same time to handle listings for non-pharma, non-biotech, and non-medical product companies that are now under the purview of the Office of Life Sciences.

This fall is the anticipated launch date for both the Office of Industrial Applications and Services and the Office of Crypto Assets.

“As a result of recent growth in the crypto asset and the life sciences industries, we saw a need to provide greater and more specialized support in the DRP’s Office of Finance and its Office of Life Sciences,”

said Renee Jones, Director of the Division of Corporation Finance, in a statement.

However, many digital assets may be reclassified as commodities under recent legislation put up by U.S. Senators Cynthia Lummis and Kirsten Gillibrand, transferring them from the SEC’s purview to that of the Commodities Futures Trading Commission instead.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.