The US CVM, the SEC, released a public statement last Tuesday (7) stating that one of the priorities for 2023 is the cryptocurrency market and its functioning.
The new measure may put even more pressure on companies that are active in the market. That’s because 2022 was a year marked by cryptocurrency platform scandals.
The main focus will be on the area of the SEC’s Examination Department, whose mission is to protect investors and ensure the proper functioning of the US capital market.
US CVM places the cryptocurrency market as one of the priorities for 2023
With the definition of priorities always announced at the beginning of the year, the SEC believes it helps the capital market understand which sectors pose greater risk to investors.
SEC Chairman Gary Gensler said the new priorities for 2023 could help shape federal laws on these issues.
“In an era of growing markets, evolving technologies and new forms of risk, our exams department continues to protect investors. In executing the 2023 priorities, the division will help ensure compliance with federal securities laws and regulations.
For example, cryptocurrencies and emerging technologies are among the highlights. The US division of the CVM focuses on investigating brokers and investment advisors who offer products to cryptocurrency investors.
Those offers on online platforms are also analysed. As a result, any platforms that fail to meet compliance requirements could be in trouble.
Offer, sell, recommend and advise on cryptocurrencies under evaluation
In addition to examining the cryptocurrency supply, the sale, advice and recommendation of products in the sector will also be examined.
That is, if a company is not careful with its offerings, in conducting risk management and improving its compliance practices, it could get into trouble with the authorities.
In a note, Richard R. Best, director of the SEC Division of Review, said the new priorities reflect the risks associated with the securities market.
“Our priorities reflect the changing landscape and associated risks in the securities market and are the product of a risk-based approach to exam selection that distributes our resources across a diverse base of registrants. We will emphasize compliance with new SEC rules that apply to investment advisors and investment firms, and we will continue to focus on emerging issues and regulations designed to protect retail investors. Our exam program continues to evolve and we remain committed to advancing investor protection through high-quality exams and keeping abreast of the latest industry trends and emerging risks for investors and markets.”
It is worth remembering that the CVM in Brazil also cooperates with the regulation of cryptocurrencies and the supervision of companies operating in the market.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
