SEC Commissioner Mark Uyeda wants to update the agency's S-1 disclosure for cryptocurrency firms. His stance is a positive step toward progress.
Securities and Exchange Commission member Mark Uyeda suggested in a July statement that his agency had missed the mark with its approach to cryptocurrency, and proposed a shift in how the SEC handles S-1 requirements for crypto — the process by which companies publicly offer and distribute digital assets.
"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," Uyeda noted in his statement. "This approach ... is problematic because it neither facilitates capital formation nor protects investors. Consideration should be given to allowing variances from Form S-1 for crypto digital assets, similar to that given for fund and insurance products and other securities products."
Such a shift would move the agency away from pure enforcement and toward constructive regulation, and offer a more viable path for digital-asset issuers seeking to comply with securities laws.
