SEC established new rules for US cryptocurrency exchanges

At the end of March, the US Securities and Exchange Commission presented to the public new rules for exchanges. Regulatory failures in the sphere that experts still consider excessively risky were a premise of the updates.

A call to responsibility

On March 31, the SEC announced the need for US-registered cryptocurrency companies to provide information about client assets. In addition to information about the balance of digital currency, representatives of organizations must notify investors of possible risks. According to Reuters, the rules are also applied to traditional companies (banks, exchanges, retail brokers), whose services include the storage of digital assets. The regulator continues to warn potential clients about the probability of financial losses, following one of its key missions – protecting investors. According to SEC Chairman Gary Gensler, owners of digital assets on cryptocurrency exchanges are actually providing them with unsecured loans. At the same time, accounting standards that allow providing guarantees to clients have not yet been developed in the US crypto industry.

Cryptocurrency companies: what to be prepared for?

The SEC has ruled that entities must report the nature and amount of cryptocurrencies they hold. Details must be disclosed for each digital asset. Vulnerabilities associated with its ownership are of particular interest. The innovations are exclusively related to U.S.-registered and regulated cryptocurrency companies.