Crypto: The SEC Reveals Its True Intentions!

The crypto landscape, long compared to a digital Wild West, finally seems to be seeing the emergence of a semblance of regulatory mapping. The SEC, the historical guardian of American financial markets, has just outlined a roadmap to clarify the application of securities laws to cryptos. Far from being a flashy move, this initiative aims to be a compass for market players, oscillating between innovation and compliance. A deep dive into the labyrinth of a regulation in progress.

Cryptos in the Spotlight

The yuan continues to fall. Some see it as a signal: the time has come to turn to crypto. Meanwhile, the SEC is becoming more vigilant. On April 10, its Division of Corporate Finance issued a statement. It explains how federal securities laws could apply to crypto assets. A clear warning, in an increasingly tense context.

Although non-binding, these guidelines highlight a clear expectation: companies must unveil the behind-the-scenes. Operations, business models, technological mechanisms… Nothing should remain in the shadows. “A welcome step towards clearer regulatory direction”, according to attorney Joe Carlasare.

The SEC now requires companies to explain their technical infrastructure with surgical precision.

Blockchain Proof-of-Work or Proof-of-Stake? Block sizes, transaction speeds, reward mechanisms… These details, often relegated to the background, are becoming central.

Even the open-source nature of a protocol must be explicitly mentioned. An effort for transparency that, if well executed, could enhance the credibility of a sector still perceived as opaque.

While the SEC specifies that no registration is required for crypto offerings not classified as securities, it carefully avoids defining which assets fall into this category. A strategic vagueness? Probably. This gray area leaves a persistent uncertainty, reminding us that the legal battle over cryptos like XRP or ETH is far from over.

Transparency Required: Risks to Disclose Without Filter

Companies must now list risks with unflinching honesty. Price volatility, network vulnerabilities, dangers associated with crypto custody… The SEC demands a comprehensive list, going beyond classical business risks. The goal? To avoid unpleasant surprises for investors, often overwhelmed by technical jargon or overly bold promises.

Another crucial point: smart contracts. The SEC insists that companies reveal whether their code has been audited by third parties and who can modify it. A measure targeting decentralized projects, where protocol updates can trigger governance wars. In short, every modification must be traced, every decision justified.

Finally, the identity of key executives and significant employees must be disclosed. A requirement that disrupts the anonymity sometimes cherished in crypto culture. For the SEC, knowing the key players helps assess the legitimacy of a project. An approach that could deter scams but also clash with decentralization purists.

With these directives, the SEC is walking a tightrope: regulating without suffocating, clarifying without rigidifying. While some see this as a first step towards institutional recognition, others denounce a regulatory straitjacket. Nevertheless, in a sector where trust is a rare currency, this imposed transparency could prove beneficial.

Let’s hope that stakeholders see it as an opportunity, not an obstacle. In crypto as elsewhere, more clarity is better than ambiguity. And this clarity could soon be paired with a booster shot. Trump, if he continues on his path, could very well usher the industry into a new era. So, hang on tight.