SEC Commissioner Mark Uyeda has criticized his agency’s handling of crypto disclosure rules, labeling the generalized approach for crypto asset filings as “problematic.”
In a statement on July 1 on the SEC’s official website, Uyeda announced new rules and form amendments to implement the Registered Index-Linked Annuities (RILA) Act, altering requirements for certain firms’ Form N-4 applications. At first glance, the announcement appears unrelated to crypto. However, the footnotes include a critique of the Gensler-led agency’s regulation of crypto assets, particularly regarding Form S-1 filings.
In footnote 3, Uyeda suggested updates to Form S-1 filings — used when firms go public or register new securities — to better accommodate the unique nature of digital assets. He condemned the current crypto filing approach as “problematic.”
“Many of these issuers and crypto digital assets have characteristics for which Form S-1 may technically require information that is not relevant or applicable, but does not require certain information that may be material,” Uyeda wrote.
On July 2, Alexander Grieve, head of government affairs at crypto venture capital firm Paradigm, highlighted this statement in a post on X, noting it was the first time Commissioner Uyeda had publicly advocated for a tailored disclosure regime for crypto assets.
Source: Alexander Grieve
“The SEC under a different admin would be a very different place,” Grieve added. The Blockchain Association, a U.S.-based crypto advocacy group, also lauded Uyeda’s comments in a July 2 post on X, describing his “nuanced, innovation-forward approach” as precisely what the industry needs.
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Uyeda’s statement follows the agency’s lawsuit against Ethereum development firm Consensys on June 28, accusing its wallet application MetaMask of operating as an unregistered broker in the “offer and sale of securities.” The lawsuit also targeted Ethereum staking services including Lido DAO and Rocket Pool, platforms used by MetaMask for Ether (ETH) staking.
Consensys had previously sued the SEC in April after receiving a Wells notice from the agency, contesting potential efforts to classify ETH and related staking services as securities.
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