Securities and Exchange Commission has announced its 2020 crypto priorities. The report includes the agency’s views on the oversight needs. These are the needs that are posed by the digital assets. The agency will continue to oversee the role of agents in record keeping. It will also look at the issue of safeguarding the funds.
2020 Crypto Priorities
The US Securities and Exchange has a department that deals examination and other compliances. It is known as the OCIE – Office of Compliance Inspections and Examinations. It has finally given its priorities for the year. It includes its views on the oversight requirements.
The agency talked of the risks usually presented by the emerging digital assets markets to the retail investors. It is meant to the investors who might not understand the main difference between operations of the assets from the ordinary ones.
About The Report
OCIE acknowledge the risks that are in the market. As a result of that, it will continue to identify and examine the SEC-registered market participants that are in the market.
The examinations will assess some of the fundamental issues in the crypto market. They include portfolio management and the trading practices.
It will also look at the investments suitability, and the safety of the clients’ funds and the assets. The other factor that will be checked is the valuation and pricing.
Other Factors To Be Monitored
The agency has also listed two other main factors that will be checked. The first of these final factors is on the effectiveness of compliance controls and compliance. In addition to that, there is supervision of the employee outside the main business activities.
2018 And 2019 Reports
In the 2018 examination priorities, some other issues were checked. It spoke about the need to evaluate how service providers protect client assets. It will also monitor whether they will clearly disclose the risks connected to their products.
2019 was also another great year for the agency. It announced its new plans to assess the market participants in terms of portfolio management. It will also be looking at the trading practices, pricing, and the safety of client funds. There is also the issue of internal controls include therein.
And Now To 2020
The OCIE has now restated the objectives of the previous year. It has just added an assessment goal that regards the supervision of employee outside the main business activities. The report has also talked about a plan to continue assessing the transfer of the agents’ roles in record keeping.
According to the report, the main area of focus includes transfer of agents who create the blockchain technology.