- The regulator intends to focus on “new or never before examined” entities that are offering crypto assets this year.
- The influencer believes that SEC’s ambiguous language will pave the way for enforcing regulations on a wide range of firms.
Popular crypto influencer Crypto Eri recently highlighted some questionable aspects of the Securities and Exchange Commission’s priorities for this year. According to the Commission’s examination priorities for 2023, particular focus will be given to new or never before examined registrants offering crypto or crypto-related assets.
Crypto Eri took to Twitter earlier today to tell her nearly a quarter million followers about the ambiguous language used by the securities regulator in its 2023 priorities. According to the influencer, the SEC cast a very large net for regulation in its 2023 playbook, because no crypto exchange has registered with the securities regulator.
According to Crypto Eri, since no exchange has registered, the SEC’s priorities for this year will let it continue regulating crypto entities through the enforcement of policies. The SEC stated that “examinations of registrants will focus on the offer, sale, or recommendation of, advice regarding and trading in crypto or crypto-related assets.”
The SEC’s 2023 priorities became the talk of the crypto industry when it was released in February earlier this year. The priorities directed the securities regulator to increase scrutiny of crypto brokers and investment advisors offering advice about cryptocurrencies in the United States. The document advised crypto brokers to exercise caution when offering, selling, or making recommendations regarding digital assets.
The SEC also intends to ensure that market participants involved with crypto assets meet and follow their respective standards of care when giving advice, making recommendations, or providing investment advice. The Commission will also ensure that crypto entities regularly review, update and enhance their compliance, disclosure, and risk management practices.