In recent years, the influx of cryptocurrency issuers has continued to rise. Even to this day, the count does not seem to be ending.
Approval Requirement by the US SEC
Despite the current downtrend in the cryptocurrency industry, the number of crypto issuers has been rising. Compared to the rest of the countries, the number of crypto issuers has been rising tremendously in the United States.
It is a strict rule in the United States that they need to be authorized by the Securities and Exchange Commission (SEC) before they can offer securities to US locals.
Any firm that starts issuing and offering cryptocurrencies/digital assets without the proper approval is taken to court by the US SEC. Therefore, any crypto issuer wanting to offer cryptocurrency services in the US files for approval by the US SEC.
As the influx of filings by cryptocurrency issuers has been rising tremendously, the US SEC has decided to deal with the situation smartly.
US SEC has Opened New Offices
With the rising influx of filings by crypto issuers, the US SEC made the decision of dedicating offices for filing review purposes.
The US SEC has announced it is considering the possibility of opening up two offices where the filings from the crypto issuers will be forwarded for review.
After reviewing the filings, the specialized support would proceed with approving or rejecting the filings. The US SEC had revealed that they were reviewing such requests at seven offices already.
However, these offices were involved in activities other than the approval of the filings. Now, the two offices will fully support the crypto issuers by reviewing their filings much faster than the already operating offices.
Disclosure Review Program
The US SEC has recently announced the launch of the Disclosure Review Program (DRP), which is governed by the Division of Corporation Finance.
According to the US SEC, the offices include an Official of Industrial Applications and Services and the Office of Crypto Assets.
These offices will focus solely on cryptocurrency assets and digital assets. The purpose of these offices will be to review services and facilities that the crypto issuers propose in their filings.
Purpose of the New Offices
With the opening of the new offices, the US SEC will be able to pay more attention to the filings submitted by the crypto issuers.
Such a move by the US SEC would help boost the adoption level of cryptocurrencies in the United States. The US SEC would eventually expedite the process of approving cryptocurrency firm filings.
This way, the adoption level of cryptocurrencies may rise substantially all over the United States. This would eventually help increase the trading prices of cryptocurrencies in the global markets.