Highlights of FY 2023 for SEC’s Crypto Oversight

December 18, 2023

By Anjali Kochhar

The Securities and Exchange Commission (SEC) has made public the scope of its fiscal year 2023 operations and priorities, demonstrating a strong commitment to overseeing and protecting the rapidly changing cryptocurrency market. The SEC’s numerous divisions focused on strengthening investor protection, maintaining market integrity, and adjusting to the ever-changing financial markets.

Division of Investment Management (IM)

In the IM division, close examination of changes in the cryptocurrency space and worldwide market events took center stage. Investor protection was given special attention, with mutual funds and exchange-traded funds (ETFs) examining investments in cryptocurrency-related assets. Stablecoins were a major focus of the SEC’s cooperative efforts with other divisions to supervise crypto asset trading, lending, and decentralized finance (DeFi) platforms closely.

Division of Trading and Markets (TM)

TM took the lead on several fronts, including the development of regulation programs to improve market competitiveness and efficiency. December 2022 featured the introduction of measures including the best execution standard and the handling of advantages in off-exchange market centers in proposals aimed at the $40 trillion stock markets. Additionally, TM pursued rulemaking to strengthen market integrity, which resulted in the Dodd-Frank Act’s final rules pertaining to credit ratings and security-based swaps being adopted.

Division of Corporation Finance (CF)

With a specific focus on the spike in IPOs and SPACs, CF carefully examined records from 7,800 public firms and entities considering going public in FY 2023. Prominent subjects such as geopolitical tensions and disruptions in the cryptocurrency asset markets were discussed in public remarks on disclosure obligations. Reviews of disclosures made in accordance with the new requirements, such as mandates matching compensation to performance, were also included in CF’s reach.

Division of Enforcement (ENF)

In the rapidly changing world of cryptocurrency assets, ENF remained an active investigator. Through crypto-based loan schemes, legal actions were brought against persons and businesses involved in unregistered securities offerings, governance token manipulation, and consumer fund diversion. The fact that celebrities and influencers promoted crypto asset securities without reporting payment was a noteworthy target of enforcement proceedings.

Exams and Inspections Office of Compliance (EXAMS)

By conducting extensive reviews with an emphasis on fiduciary requirements and Regulation Best Interest, EXAMS provides investor protection top priority. Investing in environmental, social, and governance issues, cybersecurity, operational resilience, crypto assets, and compliance with Regulation SCI were among the important topics. The dedication to investor education was highlighted by the release of Investor Alerts, which covered subjects including crypto asset securities and investment scams connected to natural disasters.

About the author

Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.

Translate Now