Chamber Weighs in: International Organization of Securities Commissions’ Regulatory Considerations Relating to Crypto-Asset Trading Platforms

This week, the Chamber submitted comments to the International Organization of Securities Commissions’ (IOSCO) consultation on Issues, Risks and Regulatory Considerations Relating to Crypto-Asset Trading Platforms (CTPs). IOSCO, an association comprised of organizations regulating securities and futures markets, requested public comment to assist its members in evaluating the regulatory needs and risks surrounding CTPs.

The Chamber focused on advocating for meaningful industry dialogue and input, a key to creating effective and appropriate regulatory regimes for CTPs. By providing such dialogue, the Chamber hopes to clarify to IOSCO and similar regulatory authorities that not all crypto-assets are securities. Regulatory clarity in defining what constitutes a digital security is essential to CTP regulatory compliance and, in turn, the continued growth of the blockchain industry.

Our Recommendations:

The Chamber used this opportunity to advocate for the development of appropriate and effective regulatory guidelines benefitting ongoing engagement with industry participants and stakeholders.

    1. Recognize that a broad array of crypto-assets has emerged, and even more will emerge over time, not all of which are crypto-asset securities.
    2. Regulatory guidelines regarding the appropriate categorization and regulatory treatment of these assets will provide needed clarity to enable implementations of blockchain technology to flourish.
    3. Regulation should be technology neutral. Crypto-asset securities have the same legal character as traditional securities.

    The Chamber advocates for the adoption of blockchain technology in a legal environment balancing regulation and innovation. Helpful guidance and regulatory clarity surrounding crypto-assets will lead to continued innovation and ensure industry success for years to come.

    To view the Chamber’s comments to IOSCO, please visit here.