Cryptocurrency News and Regulatory Developments
It’s not news that the world of cryptocurrency is volatile and unpredictable, and demand for lawyers with expertise in this space follows suit. The so-called “crypto winter” started in late 2021 and continued through the following year, and FLEX saw crypto related roles decline significantly. But 2023 saw a crypto rebound which gained steam in 2024, leading to expectations of even more growth this year. For services like FLEX, this is likely to mean more client demand for lawyers who have experience with legal issues associated with these digital assets. Here are some regulatory developments signaling more momentum for companies in the crypto space.
- The SEC announced the formation of a dedicated crypto task force. This initiative aims to establish clear regulatory guidelines, making it easier for crypto companies to register with the SEC, establish sensible disclosure frameworks, ensure investors have access to necessary information about crypto projects, and use their enforcement powers wisely when dealing with crypto issues.
- The Acting Chair of the Federal Deposit Insurance Corporation (FDIC) has outlined key areas of focus for the institution. These primary areas include adopting a more open-minded stance towards technological innovation and promoting transparency regarding fintech partnerships, digital assets, and tokenization.
- The SEC rescinded its previous interpretive guidance, SAB 121, which required banks and public companies to disclose customer crypto assets on their balance sheets. The new guidance, SAB 122, encourages these entities to provide comprehensive information about their responsibilities and the measures they take to safeguard these digital assets. This revision aims to enhance transparency and protect investors by ensuring they have access to critical information regarding the handling and security of their crypto-assets.
As the crypto regulatory landscape continues to shift, stakeholders in the cryptocurrency market are closely monitoring these developments, anticipating how they will shape the future of digital assets in the U.S. If you’re interested in crypto lawyers please contact FLEX.