SEC to address growing crypto issuer filings with specialized offices

Regulation

In light of the influx of filings from cryptocurrency issuers in the United States, the Securities and Exchange Commission (SEC) decided to set up two new offices this fall to provide specialized support to the seven offices currently responsible for reviewing issuer filings. 

Under the Division of Corporation Finance’s Disclosure Review Program (DRP), the SEC announced plans to add two offices — an Office of Crypto Assets and an Office of Industrial Applications and Services — purely focused on dealing with crypto assets and industrial applications and services, respectively.

Sharing insights into the move, Renee Jones, director of the Division of Corporation Finance, stated:

“The creation of these new offices will enable the DRP to enhance its focus in the areas of crypto assets, financial institutions, life sciences, and industrial applications and services and facilitate our ability to meet our mission.”

According to the announcement, the Office of Crypto Assets will take over DRP’s effort to review crypto filings, allowing the department to refocus its resources “to address the unique and evolving filing review issues related to crypto assets.”

The Office of Industrial Applications and Services, on the other hand, will be set up to take over non-pharma, non-biotech, and non-medicinal products from the Office of Life Sciences.

Related: Brazilian SEC seeks to change its role in cryptocurrency regulation

A recent SEC filing revealed MicroStrategy’s intent to sell class A stocks worth $500,000,000 and reinvest the capital “for general corporate purposes, including the acquisition of Bitcoin (BTC).”

Snippet from MicroStrategy’s SEC filing. Source: SEC.gov

MicroStrategy holds approximately 129,699 BTC, which was amassed over several years at an aggregate purchase price of $3.977 billion. With crypto prices failing to recover, the company’s BTC reserves stand as a loss of over $1 billion, as shown by Bitcoin Treasuries data.

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