In a recent development, SEC Commissioner Mark Uyeda has critiqued the agency’s standardized method of handling crypto asset disclosures, labeling it as “problematic.”
On July 1, through a **statement** on the SEC’s official portal, Uyeda heralded the introduction of novel regulations and amendments to forms, aimed at enacting the Registered Index-Linked Annuities (RILA) Act. This initiative modifies certain stipulations regarding the submission of Form N-4 by particular companies.
At a cursory look, the announcement appears to have no connection to cryptocurrency. Yet, a closer examination of the footnotes reveals Uyeda’s discreet criticism of the current regulatory strategies employed by the Gensler-led SEC, especially concerning the disclosure of information in Form S-1 submissions.
In the third footnote, Uyeda advocates for an overhaul of the Form S-1 — a document utilized by corporations during IPOs or when registering new securities — to more accurately represent the distinct attributes of digital assets. He expressed disapproval of the SEC’s existing protocol for crypto disclosures as “problematic.”
Uyeda pointed out, “A number of these issuers and crypto digital assets possess traits that may render certain required information by Form S-1 as irrelevant or inapplicable, while simultaneously omitting details that could be deemed material.”
Following this, on July 2, Alexander Grieve, the lead for government affairs at the crypto venture capital firm Paradigm, acknowledged in a **post** to X that this was the first instance, to his knowledge, of Commissioner Uyeda publicly advocating for a bespoke disclosure framework for crypto assets.
Credit: Alexander Greive
Grieve noted, “Under a different administration, the SEC would operate quite differently.”
The Blockchain Association, a crypto advocacy organization based in the United States, lauded Uyeda’s remarks in a July 2 **post** to X. They commended his “nuanced, innovation-forward approach” to cryptocurrency, which they believe is precisely what the sector requires.
In related news, the SEC initiated legal action against a bank associated with FTX, citing fraudulent activities. This lawsuit was filed merely four days after Uyeda’s agency brought charges against the Ethereum development company Consensys on June 28. The allegations stated that Consensys’ wallet application, MetaMask, functioned as an unregistered broker involved in the “offer and sale of securities.”
The lawsuit also encompassed Ethereum staking services such as Lido DAO and Rocket Pool, which are platforms utilized by MetaMask for Ether (ETH) staking.
In a countermove, Consensys filed a lawsuit against the SEC in April, following a Wells notice from the agency. This legal challenge was a response to potential attempts by the SEC to categorize ETH and associated staking services as securities.
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