Mark Uyeda, a member of the Securities and Exchange Commission (SEC), has suggested that the agency needs to change its approach to cryptocurrency. In a statement made in July, Uyeda acknowledged that the SEC’s current handling of S-1 requirements for crypto is flawed and proposed a shift in how these requirements are handled. He stated that many crypto digital assets have characteristics that make the information required by Form S-1 irrelevant or inapplicable. Uyeda argued that this approach is problematic as it neither facilitates capital formation nor protects investors. He recommended allowing variances from Form S-1 for crypto digital assets, similar to what is given for other securities products like fund and insurance products. This proposed shift would enable the SEC to move away from pure enforcement and towards constructive regulation, offering a more viable path for digital asset issuers to comply with securities laws.
Time to Revamp the SECs Crypto Disclosure Procedures