CoinReg Tech Proposes Regulatory Measures for Digital Asset Securities

According to Odaily, CoinReg Tech, a provider of regulatory technology for the digital asset market, has submitted recommendations to the U.S. Securities and Exchange Commission (SEC) through its cryptocurrency task force. The proposals focus on several key areas of regulation for digital asset securities. Firstly, CoinReg Tech suggests that digital asset securities trading, whether conducted 'on-chain' or 'off-chain,' should adhere to the same transaction reporting requirements as standard securities. This measure aims to ensure transparency and consistency in the reporting of digital asset transactions. Secondly, the company highlights the need to address investor protection and market structure issues arising from off-chain transactions facilitated by trading platforms. This includes ensuring that investors are adequately protected and that the market operates efficiently and fairly. Additionally, CoinReg Tech recommends amending the rules of the Securities Exchange Act to mandate timely reporting of all transactions considered to be digital asset securities. This would enhance the visibility and traceability of such transactions, contributing to a more robust regulatory framework. Finally, the proposal calls for joint authorization and regulation of Digital Asset Repository Transactions (DART) by the SEC and the Commodity Futures Trading Commission (CFTC). This would involve recording transactions, including those submitted to public ledgers and off-chain transactions, as well as related customer ownership, regardless of whether the digital assets are classified as 'securities' or 'commodities.' These recommendations aim to create a comprehensive regulatory environment for digital asset securities, ensuring both market integrity and investor protection.