The U.S. Securities and Exchange Commission (SEC) has responded positively to a new regulatory proposal from CoinRegTech, a firm specializing in cryptocurrency market oversight. This move signals a growing effort to bring transparency, investor protection, and better supervision to the digital asset securities market.
A Step Toward Stronger Crypto Regulations
CoinRegTech’s proposal focuses on three key areas that could reshape how digital asset securities are regulated in the U.S.:
Stronger Investor Protection – The proposal urges the SEC to enforce stricter structural requirements for crypto trading platforms. This would safeguard investors and provide a more secure environment for trading digital asset securities.
Improved Transaction Reporting – CoinRegTech is pushing for updates to the Securities Exchange Act, ensuring better reporting standards for digital asset transactions. This would increase market transparency and improve supervision.
The Digital Asset Electronic Reporting System (DART) – In a major development, CoinRegTech has suggested launching a joint reporting system with the Commodity Futures Trading Commission (CFTC). If implemented, DART would enhance regulatory oversight and bring greater accountability to crypto markets.
SEC’s Response and What It Means for Crypto
The SEC’s favorable reaction suggests that regulators acknowledge the need for clearer oversight instead of relying solely on enforcement actions. If these recommendations are implemented, they could lead to:
➡️ Stricter compliance requirements for crypto exchanges, making them operate more like traditional securities platforms.
➡️ More legal clarity for companies working with digital assets.
➡️ Greater transparency in the market, reducing the risk of fraud and manipulation.
A Collaboration Between SEC and CFTC?
One of the most significant aspects of the proposal is the call for greater cooperation between the SEC and the CFTC. These two agencies have long debated their roles in regulating digital assets—the SEC views many crypto tokens as securities, while the CFTC oversees Bitcoin and other digital commodities.
The introduction of DART, a joint reporting system, could be a game changer by creating a more unified regulatory framework for crypto markets.
The Future of Crypto Regulation
With the SEC showing support for CoinRegTech’s proposal, the crypto industry may soon see a more structured and transparent regulatory environment. While tighter regulations could mean increased compliance costs for platforms, they could also help legitimize crypto as an asset class, attracting more institutional investors.
