Yesterday, the Securities and Exchange Commission (SEC), Division of Trading and Markets, updated an FAQ on “crypto asset activities.”
The SEC is working through changing rules to accommodate digital assets and the ongoing transition to tokenization and more. After four years of active subversion during the Biden Administration, the SEC is moving to lead the world as crypto takes over.
The FAQ addresses multiple issues. The document has been changed over time during the current Commission. Issues addressed include:
- Broker-Dealer Financial Responsibility, including whether a crypto is a security or not, custody, and more.
- Transfer Agents
- Asset Pairs trading on ATS’s and National Securities Exchanges
- ATS disclosures
- Clearance and Settlement
- ETPs
SEC Commissioner Hester Peirce commented on a change regarding payment stablecoins. She states:
“The FAQ provides that the staff would not object if a broker-dealer were to apply a 2% haircut on proprietary positions in a payment stablecoin when calculating its net capital. I appreciate the staff’s approach.
Stablecoins are essential to transacting on blockchain rails. Using stablecoins will make it feasible for broker-dealers to engage in a broader range of business activities relating to tokenized securities and other crypto assets.”
Commissioner Peirce expressed her interest in receiving industry feedback on the issue and how the emerging issue could be better managed.