Commissioner Mark Uyeda calls SEC’s approach to crypto filings ‘problematic’

SEC Commissioner Mark Uyeda has taken a jab at his agency’s approach to crypto disclosure rules, describing the generic approach applied to crypto asset filings as “problematic.”

In a July 1 statement on the SEC’s official website, Uyeda announced the adoption of new rules and form amendments to implement the Registered Index-Linked Annuities (RILA) Act, changing some of the requirements for how specific firms file their Form N-4 applications.

At first glance, the statement seems entirely unrelated to crypto.

However, tucked away in the footnotes was a subtle swipe at how the Gensler-led agency had been approaching its regulation of crypto assets, specifically when disclosing information in Form S-1 filings.

In footnote 3, Udeya called for the Form S-1 filings — used by firms when going public or registering new securities — to be updated to better reflect the unique nature of digital assets and slammed the agency’s current approach to crypto filings as “problematic.”

“Many of these issuers and crypto digital assets have characteristics for which Form S-1 may technically require information that is not relevant or applicable, but does not require certain information that may be material,” Udeya wrote.

“This [current] approach for crypto digital assets is problematic because it neither facilitates capital formation nor protects investors.”

In a July 2 post to X, Alexander Grieve, head of government affairs at crypto venture capital firm Paradigm, said this was — to his knowledge — the first time that Commissioner Udeya had gone on record calling for a tailored disclosure regime for crypto assets.

“The SEC under a different admin would be a very different place,” Grieve added.

The Blockchain Association — a United States-based crypto advocacy group — also praised Udeya’s comments in a July 2 post to X, saying his “nuanced, innovation-forward approach” to crypto was exactly what the industry needs.

Related: SEC files lawsuit against FTX-linked bank, alleging fraud

Udeya’s statement comes just four days after his agency sued Ethereum development firm Consensys on June 28, alleging that its wallet application MetaMask acted as an unregistered broker involved in the “offer and sale of securities.”

It also targeted Ethereum staking services including Lido DAO and Rocket Pool — the platforms that MetaMask uses for Ether ( ETH ) staking.

Consensys sued the SEC in April after receiving a Wells notice from the agency, challenging potential attempts to classify ETH and related staking services as securities.

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