SIFMA encourages the SEC to establish clarity in its crypto-regulation approach

The SIFMA (Securities Industry and Financial Markets Association), the US Trade Association for Securities and Exchange Commission (SEC) has called on clear rules for crypto. On Thursday, the platform met with SEC officials to discuss digital assets issuance, merchandise and tokenized securities.

The need for consistent, progressive cryptographic rules

According to the memo, SIFMA urged the SEC to establish consistent, progressive rules for crypto, and to establish a clear regulatory approach for platforms involved in digital assets. SIFMA also encouraged the SEC to establish innovative approaches that are tailored to current technological advancements.

The SEC also suggested that it would take a “holistic approach” to incorporate technology updates, classification of securities and digital products, open development of digital securities with transparency, and the provision of border cross-border applicability in crypto landscapes.

Important highlights of SIFMA meeting with SEC

• The initiative aims to integrate traditional finance (Tradfi) with crypto space, along with major crypto assets such as Bitcoin (BTC) and Ethereum (ETH).

• Sifma also seeks to promote innovation and clarity in regulations with consistent, progressive cryptographic rules to integrate Tradfi into the US crypto market.

• The effort is also aimed at establishing a unified regulatory approach for the issuance, management and transaction of crypto assets.

• SIFMA also emphasized that the SEC needs to ensure competition and compatibility for exchanges and broker dealers, trading and management, service providers of digital goods and tokenized securities, and promotion of competition and compatibility.

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Promoting the adoption of digital assets

Sifma, a holder of nearly 90% of US financial market share, has noted the growing demand for TradFi players to adopt digital assets into their products and services. Therefore, we proceeded to establish legal clarity regarding the cryptocurrency regulatory approach. SEC Chair Paul Atkins stressed the need to establish clear rules in cryptography, he said –

“Establish clear rules for the roads for issuance, storage and trading of crypto assets aimed at protecting investors while promoting responsible innovation.”

Final thoughts

SIFMA continues to develop and encourage regulatory frameworks for US digital assets. The move comes at a time when the country is already at its peak with digital assets being accepted by implementing a series of new laws. Despite the regulations, this approach lacks legal clarity and will likely be resolved with SIFMA’s proposal.