Three organizations propose SEC-backed framework to bring Wall Street…

The U.S. Securities and Exchange Commission (SEC) has received a proposal from the Solana Policy Institute, Superstate Inc., Lowenstein Sandler LLP, and Orca Creative. This proposal aims to address regulatory concerns surrounding the cryptocurrency industry, particularly the lack of clarity on the classification of digital assets.

The proposal suggests creating a new entity, the Digital Asset Trade Commission (DATC), which would serve as a regulatory body specifically focused on overseeing the digital asset market. The DATC would be responsible for establishing guidelines and standards for digital asset issuers, trading platforms, and investors to ensure compliance with existing securities laws.

One of the key components of the proposal is the creation of a Digital Asset Classification Council (DACC), which would be tasked with classifying digital assets based on their characteristics and intended use. This classification system would provide much-needed clarity for market participants, allowing them to better understand the regulatory implications of their activities.

Additionally, the proposal includes provisions for the establishment of a Digital Asset Investor Protection Fund, which would serve as a safety net for investors in the event of fraud or other malfeasance in the digital asset market. This fund would be funded by contributions from digital asset issuers and trading platforms, ensuring that there are resources available to compensate investors who have been harmed.

The proposal also calls for increased cooperation between government agencies and industry stakeholders to address regulatory challenges in the digital asset market. By working together, regulators and market participants can develop more effective solutions to ensure the integrity and stability of the market.

Overall, the proposal put forth by the Solana Policy Institute, Superstate Inc., Lowenstein Sandler LLP, and Orca Creative represents a significant step towards addressing the regulatory challenges facing the digital asset industry. By creating dedicated regulatory bodies, establishing clear classification guidelines, and enhancing investor protection measures, the proposal aims to create a more transparent and secure environment for digital asset market participants.