NewsletterBreaking: SEC Issues Statement For Digital Asset Brokers Holding Security Tokens
SEC in latest press release has provided five more years to digital asset brokers holding custody of security tokens who are following SECs guidelines. This press release comes as a breather for many digital asset and crypto brokers who were under fear due to SECs recent lawsuit on Ripple.
No Enforcement Actions For Digital Asset And Crypto Brokers Following SEC Guidelines
Cryptocurrency industry especially crypto brokers and exchanges are facing lot of heat in light of SECs recent $1.3 Billion lawsuit against Ripple. SEC published an official press release titled “SEC Issues Statement and Requests Comment Regarding the Custody of Digital Asset Securities by Special Purpose Broker-Dealers”.
The press release emphasizes the rules laid out in the Securities Exchange Act Rule 15c3-3 to digital asset securities and states that SEC aims to utilize it to foster innovation in the custody of digital asset securities. The press release states forth,
“for a period of five years, a broker-dealer operating under the circumstances set forth in the statement will not be subject to a Commission enforcement action. “
The commission also requested relevant businesses for comment and the statement will become effective 60 days after publication in federal register.
Why This Press Release Is Important?
Recently, Ripple company that owns 6.4 billion of XRP, previous third largest cryptocurrency by market cap was slapped by a massive 1.3 billion lawsuit for dealing in securities. SEC previously also has been very cautious with cryptocurrency businesses and has taken necessary actions for ex. ICO scams for 2017.
The crypto exchanges and brokers were in fear of SEC actions and analysts anticipated a wide delisting of XRP token. The XRP price already plummeted by more than 40% and resulted in delisting of coin from few exchanges.
This news will be breather for exchanges and brokers dealing in XRP which is being called security by SEC.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Breaking: Coinbase Adds Solana DEX Trading With Support for USDC and Bank Payments
- Big Short’ Michael Burry Issues Dire Warning on US FED’s $40B T-Bills Buy Plan
- Expert Slams Pi Network Lawsuit as ‘Deeply Flawed,’ Says Case Unlikely to Succeed
- Crypto Market to Crash? Here’s What Bitcoin On-Chain Data and BTC Options Signal
- Fifth Spot XRP ETF Set for Launch as CBOE Approves New Fund for Trading
- Bitcoin Price Steadies Above $90,000 as Markets React to Fed Rate Cut: What’s Next?
- Dogecoin Price Eyes $0.30 as Bullish Crossover Pattern Signals a Trend Shift
- Top Analyst Sees Ethereum Price Having a “Big” Breakout as Catalysts Align
- Sui Price Breaks Out of Falling Wedge: Is $2 Next Target?
- Chainlink Price Prediction: Why $20 is Next Key Target
- Solana Price Targets $200 Amid Increased Whale Accumulation
