US SEC issues suspension of action letter in response to digital asset issuance

The United States Securities and Exchange Commission (SEC), in a September 25 letter to Kris Dailey, deputy director of securities and regulatory oversight of the United States Financial Industry Regulatory Authority, digitized Alternative Trading System (ATS). These measures indicate that the US SEC has taken important steps to simplify the integration of digital assets.

This invalid letter was written by the SEC's Bureau of Trade and Industry, which said the SEC would not penalize vendors who use ATS to trade digital assets if these new instructions were followed. The unique way to manage operations in ATS, known as the “three-step process”, is to reduce the operational risk of workers by condensing the existing steps of the four-step process into three steps. He knows that some brokers have applied this method.

Usually, ATS usually follows four steps: first, buyer and seller send the order to ATS, second, ATS interrupts the order, third, ATS informs customer and seller of the competition, and finally the exchange has been completed. in two exchanges. by both parties or their guardians. However, some sellers believe that this four tier model puts you at too much risk.

The “three-step” procedures outlined in the SEC Stop Action Letter are:

Step 1: The buyer and seller send their order to ATS, inform ATS of the order sent to their supervisor, and ATS makes the ATS associated with the supervisor;

Step 2: ATS corresponds to the command.

Step 3: ATS notifies buyers and sellers of the exchange and their supervisors, who follow the instructions.

While this letter is not a legal decision, it does show that the SEC's oversight of virtual assets has become increasingly prevalent.