As technology evolves, the U.S. Securities and Exchange Commission (SEC) needs to modernize its approach to cryptocurrency regulation, moving beyond enforcement. The article outlines six immediate steps the SEC can take: 1) Provide guidance on 'airdrops' to clarify when these distributions are not securities, thus preventing offshoring of U.S. blockchain ownership; 2) Modify crowdfunding rules to better serve crypto startups by increasing offering limits and broadening investor participation; 3) Enable broker-dealers to operate in crypto by simplifying regulatory approval processes; 4) Clarify custodial and settlement guidance for traditional financial institutions, ensuring better fiduciary management of crypto assets; 5) Reform exchange-traded product (ETP) standards to encourage innovation and streamline approval processes; and 6) Implement a certification process for alternative trading systems (ATS) listed crypto assets to ensure informed investor decisions. These steps aim to balance investor protection with the promotion of innovation in the cryptocurrency market.

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