U.S. SEC to set up new office for crypto filings

The U.S. securities regulator said on Friday that it will open two new offices to handle files pertaining to crypto assets and the life sciences industry.

The Securities and Exchange Commission (SEC), which regulates corporate disclosure forms, will now have eight offices, including the "Office of Crypto Assets" and the "Office of Industrial Applications and Services."

According to Renee Jones, head of the Division of Corporation Finance, "we identified a need to give larger and more specialized assistance as a consequence of recent expansion in the crypto asset and the life sciences sectors."

As the use of cryptocurrencies and other digital assets has increased over the last few years and as they become more entwined with the regulated financial system, authorities are now responsible for assessing risks in a mostly unregulated industry.

However, demand for cryptocurrencies fell precipitously in 2022 as a result of the Ukraine conflict, a tightening of monetary policy that was severe, and inflation that was at a record high.

Demand has also been impacted by allegations of money laundering against certain cryptocurrency companies as well as customer data breaches in the United States, the largest market for digital assets.