SEC Releases Key Guidelines on Crypto Asset Issuance

Hong Kong SFC sets virtual asset staking guidance

According to SFC's announcement on April 07, Hong Kong Securities and Futures Commission (SFC) provided regulatory guidance respectively to licensed virtual asset trading platforms (VATPs) on their provision of staking services, and to SFC-authorised funds with exposure to virtual assets (VA Funds) on their engagement in staking.

In short, Hong Kong SFC allows staking but needs SFC’s prior written approval, and the SFC will impose specific conditions on a VATP’s licence.

Ripple acquires Hidden Road for $1.25B

Blockchain-based payments network Ripple announced it has acquired crypto-friendly prime broker Hidden Road in one of the largest mergers in the cryptocurrency industry to date.

Ripple is acquiring Hidden Road in a $1.25 billion deal, the company officially announced on April 8.

The deal will make Ripple the first crypto firm to own and operate a global, multi-asset prime broker. According to the company’s April 8 announcement, the acquisition is expected to position Ripple as the world’s largest non-bank prime broker, with Hidden Road currently clearing more than $3 trillion across more than 300 institutions.

SEC on crypto securities issuance and registration

Can you believe SEC, previously thought as the rival of crypto, now tells you how to properly issue a new crypto asset?

The U.S. Securities and Exchange Commission (SEC) has released a statement through its Division of Corporation Finance to clarify the application of federal securities laws in the crypto asset market. This guidance aims to assist with the registration and disclosure requirements for securities related to networks, applications, and crypto assets, including those that are part of investment contracts.

The statement addresses key disclosure elements in documents such as Regulation S-K, Form S-1, and Form 10. These elements include business descriptions, risk factors, characteristics of the securities, management information, financial statements, and the presentation of smart contract code. The SEC's guidance is intended to provide clarity on how these requirements apply to equity and debt securities associated with crypto assets.

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