According to the December 23rd announcement of the US Securities and Exchange Commission (SEC), broker-dealers handling security tokens that operate under Section IV will no longer be subjected to the commission’s enforcement actions within the next five years. This development notably addresses the long term complaint within the industry that no one really knows how to handle security trading.
This announcement by the SEC has since garnered positive response from the players within the industry – stating that it renders the commission as enabling rather than its generally-perceived reputation of being restrictive. Caitlin Long, CEO of Avanti Financial, reinforced this by saying that the development is a step in the right direction. Meanwhile, Patrick McHenry, a particular US Representative of the Financial Services Committee, acknowledges that the digital asset custody is a serious regulatory issue. He says that he appreciates SEC’s efforts towards the betterment of it while also seeing great things ahead if SEC’s stance does so persist.
It has been widely documented that the public perceives the SEC as a hindrance to the custodians of digital assets officially becoming fed-regulated broker-dealers. This development seemingly changes all that. On top of the said announcement, SEC is also looking for comments or opinions within the industry concerning the many issues it tackles in correlation to the proper handling of security token trading.