- The US SEC has discussed risk alert on digital assets securities
- According to the SEC, they examine a lot more issues before they permit any crypto company to operate.
The US Securities and Exchange Commission (SEC) has addressed risk alerts in reference to digital assets securities. The SEC gave the alert based on how crypto companies offer, issue, and trade cryptocurrencies.
However, the SEC underscores that there are a lot more issues that need to be addressed on a crypto company’s applications before they become broker-dealers.
According to the SEC, cautions and risk assessment on digital asset securities are not subject to warnings. Instead, it is based on the authority’s point of view. Concerning the SEC’s Division of Examinations, they do more reviews on crypto investment companies.
As per the SEC, crypto exchanges really attract much more issues in terms of registrations.
SEC Commissioner Hester Pierce, also known as “Crypto Mom” took the SEC’s risk alert to Twitter and asked people to share their ideas.
SEC’s exam division released a risk alert on digital assets. I welcome your feedback: https://t.co/YzPWEefMfh— Hester Peirce (@HesterPeirce) February 26, 2021
Recently, the SEC also sued Ripple over an alleged unlicensed security trade of its XRP asset.