SEC US expands staff for stricter cryptocurrency regulation

U.S. Securities and Exchange Commission intends to expand its cryptocurrency division by hiring twenty lawyers and investigators.

According to The Wall Street Journal, an exchange regulator spokesman said that staff expansion is crucial to protect investors and ensure “a fair and regulated market when faced with major challenges.” An expanded unit (with 50 employees) will now investigate not only the cryptocurrency market but also non-fungible tokens (NFT). 

According to the regulator, in some cases, NFTs can meet the legal definition of securities, falling under the SEC's purview. 

Recall that the Commission has previously reported on its intentions to oblige cryptocurrency exchanges to report on customer assets as their funds. If earlier exchanges reported on assets on behalf of clients, now the exchange regulator wants to oblige trading floors to take responsibility for client assets. New accounting rules require publicly-traded cryptocurrency companies to record customers' cryptocurrency as assets and the companies' obligations as liabilities.

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