SEC steps back from adding “digital assets” defination in Form PF rule book
The latest statement passed by the US securities regulatory body showed that they are not in the mood to adopt any kind of precise definition related to cryptocurrencies.
The United States Securities and Exchange Commission (SEC) is a dominant financial regulatory body in the US. This agency believes the majority of the crypto assets are Securities & every crypto company should register with the agency because they provide crypto security offerings.
As a reminder, in Aug 2022, the SEC body proposed adding ‘digital assets’ as a new term to the Form PF Glossary of Terms. Here the “Form PF Glossary of Terms” is a form that SEC-registered funds are required to disclose basic details corresponding to their fund so the SEC body can assess potential “systemic risks.”
On 3 May 2023, The US SEC agency published a clear statement on the “digital assets” amendments to Form PF & said that the agency is not going to add digital assets under its rule book definition.
“We proposed adding ‘digital assets’ as a new term to the Form PF Glossary of Terms. The Commission and staff are continuing to consider this term and are not adopting ‘digital assets’ as part of this rule at this time,” the SEC statement read.
Through the proposed digital assets term definition, the SEC agency was showing significant focus toward a better categorization between the traditional assets & crypto assets but the latest decision against the self-proposed amendments is showing that the SEC body is not in the mood to give any kind of regulatory/legal identity to the crypto assets.
It is worth it to note that May of this year is very important for the crypto sector regulatory policies in America because in this month several hearings will take place among the US congressmen & the main focus of the hearing will be to bring a clear regulatory framework on the crypto sector.
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