U.S. SEC Plans Regulatory Reform on Crypto Asset Classification and Investment Contract Framework

Odaily Planet Daily reports: Jim Moloney, Head of the SEC’s Division of Corporation Finance, published an article stating that the division is committed to rapidly advancing regulatory rulemaking. In line with Chair Paul Atkins’s priorities, the division will focus primarily on cryptocurrency asset reforms. Jim Moloney noted that the Division of Corporation Finance is preparing to submit two key recommendations to the Commission regarding cryptocurrency assets: first, to provide interpretive guidance establishing a clear taxonomy for cryptocurrency assets and outlining a framework for determining when a cryptocurrency asset constitutes an investment contract; and second, to propose a reasonable regulatory structure governing the issuance and sale of cryptocurrency assets that qualify as securities. Additionally, the division will continue to enhance market clarity through statements and no-action letters. Jim Moloney also mentioned other initiatives underway at the SEC, including implementing the Foreign Corrupt Practices Act (HFIAA); creating an option for semi-annual instead of quarterly reporting; and reducing regulatory burdens under Regulation S-K, including disclosures related to executive compensation.