SEC Commissioner's Proposal for Crypto Disclosure Reform

SEC Commissioner Mark Uyeda has suggested updating the agency's S-1 disclosure requirements for cryptocurrency firms. This is seen as a positive step towards progress, as the current approach neither facilitates capital formation nor adequately protects investors.

Need for Relevant and Applicable Disclosures

Uyeda noted that many crypto issuers and digital assets have characteristics for which the standard Form S-1 requires information that is not relevant or applicable. This problematic approach should be addressed by allowing variances from Form S-1, similar to accommodations made for other securities products.

Embracing the Real-Time Nature of Blockchain

The crypto industry's demand for timely and ongoing financial disclosures highlights the need to update the outdated static, periodic reporting methods. Blockchain technology offers an elegant solution, as its real-time, open-source data can be easily integrated into various applications to provide more dynamic disclosure.

Source: https://cointelegraph.com/news/time-update-securities-exchange-commission-disclosure-process-crypto

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