Washington’s financial watchdog has given crypto broker-dealers a Christmas present.
The US Securities and Exchange Commission (SEC) has announced that it is responding to longstanding industry complaints that it is unclear who can legally handle security token trading.
The SEC is both requesting comment on the issue and extending a hand to the crypto industry, Cointelegraph reports. What is particularly significant is that the SEC’s announcement means broker-dealers do not have to worry about enforcement for the next five years.
“In particular, the Commission’s position, which will expire after a period of five years from the publication date of this statement, is that a broker-dealer operating under the circumstances set forth in Section IV will not be subject to a Commission enforcement action,” the announcement said.
“The ‘circumstances’ specified basically boil down to keeping security tokens the primary focus of the operation and doing due diligence in terms of cybersecurity and disclosures to clients, including making sure every potential customer is aware that the broker-dealer in question is handling digital asset securities,” said the Cointelegraph report.