The Securities and Exchange Commission (SEC) department that manages corporate disclosure filings is getting two new offices: the “Office of Crypto Assets” and the “Office of Industrial Applications and Services.” These two new offices will join the seven existing offices that are already part of the department.
What will the SEC department do now?
The disclosure Review Program (DRP) of the Department of Corporate Finance collaborates with the Securities and Exchange Commission (SEC) to assist corporate finance and cryptocurrency filings. In a recent statement, the director of the Division of Corporation Finance, Renee Jones, revealed that the Securities and Exchange Commission (SEC) is planning to open up two more offices by the fall of this year to deal with the surge in the number of filings about industrial applications and cryptocurrency assets.
The Securities and Exchange Commission (SEC) has decided to make this step because it has become more difficult for it to evaluate cryptocurrency filings at the same time as a greater number of larger participants are planning to increase the size of their crypto asset holdings.
These two offices will be known as the “Office of Crypto Assets” and the “Office of Industrial Applications and Services.” The Securities and Exchange Commission (SEC) is currently in the process of establishing these two offices in addition to the seven specialized offices that are already in operation. “To address the specific and growing file review concerns associated with crypto assets” is one of the goals that the Office of Crypto Assets plans to pursue.
What is the current agenda of Industrial Applications and Services?
In the meanwhile, the office of Industrial Applications and Services is said to be concentrating on non-biotech, non-pharmaceutical, and non-medicinal items coming from the life sciences department. It is anticipated that the opening of two additional offices, as well as the hiring of specialized employees, would result in a quicker evaluation of the filings, which will in turn lead to corporations investing in crypto assets sooner than was originally anticipated.
The establishment of two new SEC offices in the United States has been hailed as a positive development by both businesses and the Securities and Exchange Commission. It is important to note that certain corporations, such as MicroStrategy, are seeking to increase the size of their cryptocurrency portfolio by investing an additional $500 million into Bitcoin. The business has submitted the review application to the SEC in preparation for its potential sale of class A stocks, which would increase the company’s cryptocurrency holdings.
MicroStrategy’s total Bitcoin holdings could not exceed $3.97 billion in value; they presently have 129,699 BTC in their possession. The current downturn in the market has resulted in their assets suffering losses. Because of this, the corporation has the intention of purchasing further. Following the opening of these new offices, the Securities and Exchange Commission (SEC) is anticipated to place a greater emphasis on “resources and experience to address the unique and changing file review concerns linked to crypto assets.”
In recent years, cryptocurrencies and other digital assets have seen a meteoric rise in popularity. At the same time, they are becoming increasingly intertwined with the regulated financial system. As a result, policymakers are now faced with the challenge of monitoring risks in a sector that is largely unregulated.
The conflict in Ukraine, aggressive monetary policy tightening, and decades-high inflation combined to have a devastating effect on global risk sentiment in 2022, which resulted in a precipitous decline in demand for cryptocurrencies.
Several cryptocurrency companies have been accused of engaging in illegal activities, including money laundering, and there have been breaches of consumer privacy in the United States, which is the most important market for digital assets. These factors have all contributed to a decrease in demand.