Criticized from all sides for its incompetence in managing the scandals that affected the cryptocurrency industry in 2022, the SEC is forced to adjust its strategies. To restore its image, it has posted information online that proves that it wants to assume the status of regulator-protector of crypto investors this year.
SEC, renewal or reinforcement of priorities?
Gary Gensler and his entire team of regulators were heavily criticized at the end of 2022. The reason: their poor management of the crises that occurred in the cryptocurrency universe. Indeed, at the end of November, Representative Tom Emmer did not mince his words against the boss of the SEC. He actually called him ” main culprit “. The few who have praised Mr. Gensler for his questionable ties to SBF and his approach to FTX’s downfall include Senator Elizabeth Warren.
Indeed, on Tuesday February 7, the website of the US Securities and Exchange Commission published a Press release outlining the SEC’s review division priorities for 2023. Note that the SEC publicly shares its approach on a regular basis. She is ” based on risk, including areas it believes pose potential risks to investors and the integrity of U.S. financial markets “.
Richard R. Best, director of the Division of Examinations, explains:
” Our priorities reflect the changing landscape and associated risks in the securities market and are the product of a risk-based approach to exam selection that balances our resources across a diverse base of filers. We will emphasize compliance with new SEC rules applicable to investment advisers and investment firms, and we will continue to focus on emerging issues and rules to protect retail investors “.
In other words, the SEC intends to step up measures to protect vulnerable investors from rogue brokers and investment advisers trading cryptocurrencies in 2023.
Some examples of priorities for 2023
In addition, the other priorities mentioned by the Division of examinations of the SEC, you will find:
- the new rules relating to investment advisers and investment companies (Advisers Act Rule 206(4)-1);
- the Registered Investment Advisor (RIA) to private funds;
- individual investors and working families:
- environmental, social and governance (ESG):
- information security and operational resilience;
- emerging technologies and crypto-assets.
Consequently, the priorities presented are not exhaustive. Provided, however, that during their execution, the SEC does not continue to maintain the fear of investors in cryptocurrency 2023.
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