On September 9, 2022, the Securities and Exchange Commission (SEC) announced its latest efforts to assert control over and regulate the Web3 ecosystem - an Office of Crypto Assets. This new office will be housed within the Division of Corporation Finance's Disclosure Review Program (DRP), which has historically been the source of focused review of issuer filings. Once officially established later this fall, the office will join the seven existing offices of the DRP.
Noting the continued growth of crypto and digital assets filings, Renee Jones, Director of the Division of Corporation Finance, commented that the creation of this new office is meant to address a perceived need for greater and more specialized support for the DRP's Office of Finance. Jones says the creation of this new office will enable the DRP to provide additional focus on matters relating to digital assets and financial institutions, in furtherance of the SEC's mission to protect investors and regulate markets.
This development comes on the heels of the establishment of a Crypto Assets and Cyber Unit within the Division of Enforcement earlier this year.
As the SEC continues rolling out new and more focused attempts to regulate the Web3 ecosystem, it is crucial that Web3 market participants remain vigilant and stay on the right side of an ever-moving line. Dinsmore attorneys will continue to monitor for updates on Web3 regulation and are available to provide counsel and assistance.
*Tanner is a Law Clerk and not licensed to practice law.
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