(Kitco News) - The US Securities and Exchange Commission (SEC) has revealed the next phase in its efforts to ramp up cryptocurrency regulation with the launch of the Office of Crypto Assets, which is expected to streamline the review process of documents submitted to the SEC by crypto firms.
The SEC announced the new office on Friday, which will be housed under the Division of Corporation Finance's Disclosure Review Program (DRP) and will focus on scrutinizing company filings.
2022 has seen a notable increase in enforcement actions by the SEC, which has moved to enhance its oversight of the digital asset industry throughout the year amid several high-profile project collapses and falling token prices.
In May, the agency disclosed the formation of a Crypto Assets and Cyber Unit under its Division of Enforcement, revamping the regulator's Cyber Unit. That move added 20 additional positions to the unit, bringing its total headcount to 50, in an effort to better "police wrongdoing in the crypto markets while continuing to identify disclosure and controls issues with respect to cybersecurity."
The new Office of Crypto Assets will be added to the Division of Corporation Finance's Disclosure Review Program (DRP), which has "long had offices to review company filings by issuers" and is designed to "promote capital formation and protect investors."
Along with the Office of Crypto Assets, the agency is also forming an Office of Industrial Applications and Services, which will oversee non-pharma, non-biotech and non-medicinal products companies. The DRP expects to have the new offices established later in the fall.
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"As a result of recent growth in the crypto asset and the life sciences industries, we saw a need to provide greater and more specialized support in the DRP's Office of Finance and its Office of Life Sciences," said Renee Jones, Director of the Division of Corporation Finance.
"The creation of these new offices will enable the DRP to enhance its focus in the areas of crypto assets, financial institutions, life sciences, and industrial applications and services and facilitate our ability to meet our mission."
According to the announcement, "assigning companies and filings to one office will enable the DRP to better focus its resources and expertise to address the unique and evolving filing review issues related to crypto assets."
