SEC Announces New Senior Advisor For Digital Assets

The US Securities and Exchange Commission has appointed Valerie Szczepanik, former assistant director of the Division of Enforcement cyber unit, to tackle the growing issue of digital assets and US security law compliance.

This latest move represents the next phase in the United State’s ongoing battle to regulate the heavily scrutinized cryptocurrency and ICO market, following the NASAA’s ‘operation crypto sweep’ last month which reportedly launched over 70 investigations into fraudulent ICO’s. 

According to the latest SEC press release, the new advisory role has been created for the purpose of

“coordinat[ing] efforts across all SEC Divisions and Offices regarding the application of U.S. securities laws to emerging digital asset technologies and innovations, including Initial Coin Offerings and cryptocurrencies.”

Already head of the SEC’s distributed ledger technology working group, Ms Szczepanik will be a key player in determining the future regulatory parameters of digital assets in the US; as the SEC attempts to bring greater stability and security to ‘mainstreet investors’.

SEC Chairman, Jay Clayton, assures us that,

“With her demonstrated skill, experience, and keen awareness of the importance of fostering innovation while ensuring investor protection, Val is the right person to coordinate our efforts in this dynamic area”

As it stands, the SEC still asserts that any Initial Coin Offerings that are classed as ‘securities’ per the DAO report precedent, will need to undergo registration or risk contravening federal security laws.

In the news this week, Ripple Labs and Titanium Blockchain Infrastructure among the most recent crypto ventures to be called into question over US security law compliance.