On July 1st, the U.S. Securities and Exchange Commission (SEC) issued new guidance for cryptocurrency ETP users, clarifying the registration process and disclosure requirements.
Disclosure Requirements for ETP Registrations
The new SEC guidance details how users can determine net asset value (NAV) and select benchmarks regarding governance structure, service provider agreements, custody procedures, and potential conflicts of interest.
Key Points of SEC ETP Guidance
The ETP guidance outlines trust objectives, tracking guidelines, issuer policies, rights, and rules for forks and airdrops. It also covers risks related to liquidity, cybersecurity, technology, regulation, and tax.
New Rules for Token ETFs
The SEC is developing new regulations for better managing digital assets, responding to increasing interest from large investment firms in token ETPs. This includes standardized listing rules for token ETFs and requirements for disclosing suspicious conduct.
The SEC's new rules aim to streamline the ETP application process while ensuring investor protections and market stability, fostering innovation in the cryptocurrency sector.
