- 60 days after their publication in the Federal Register, the regulations will be put into force.
- To be subject to it, dealers need to own or have control over $50 million.
On February 6, the U.S SEC established new regulations that would expand its registration requirements, encourage more market players to become members of a self-regulatory group, and ensure compliance with federal securities laws and regulations. Crypto and decentralized finance (DeFi) may be subject to further regulation under the new laws.
In 2022, the new regulations were suggested, with a document that spans 247 pages. In the Securities Act Rules, the terms “dealer” and “government securities dealer” are defined differently from what they are in the 1934 Securities Exchange Act, and the phrase “as a part of a regular business” is also defined differently.
Minimum Threshold Set
Market players with substantial responsibilities in providing liquidity would be subject to the regulations. According to the new rules, a dealer can make money by buying at the bid and selling at the offer, or by taking advantage of any incentives that trading venues give to liquidity-supplying traders. They can also show trading interest that is at or near the best available prices on both ends of the market for the identical security.
The new guidelines include a minimum threshold that they must meet. To be subject to it, dealers need to own or have control over $50 million. With only two Republicans on the SEC voting against the guidelines, they were ultimately approved on a party-line vote.
With the exception of a single footnote, the 194-page proposed regulation for 2022 included no reference to cryptocurrency. Still, crypto businesses and lawmakers that support cryptocurrency voiced their disapproval. A whole part of the final rule is devoted to crypto. Sixty days after their publication in the Federal Register, the regulations will be put into force.
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