SEC Commissioner Mark Uyeda criticized the generic approach applied to crypto asset filings as “problematic.” He announced the adoption of new rules and form amendments to implement the Registered Index-Linked Annuities (RILA) Act on July 1. This changes the requirements for specific firms to file their Form N-4 applications.
Although the statement seems unrelated to crypto at first, a subtle criticism of the Gensler-led agency’s approach to regulating crypto assets was found in the footnotes. In footnote 3, Udeya called for the Form S-1 filings to better reflect the unique nature of digital assets. He slammed the agency’s current approach to crypto filings as “problematic” and expressed the need for updates to the forms.
Alexander Grieve, head of government affairs at crypto venture capital firm Paradigm, stated that Udeya’s comments marked the first time that Commissioner Udeya had called for a tailored disclosure regime for crypto assets, to his knowledge. The Blockchain Association, a United States-based crypto advocacy group, praised Udeya’s comments and stated that his “nuanced, innovation-forward approach” to crypto was exactly what the industry needs.
Udeya’s statement came 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.