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New SEC Regulations Add Cryptocurrency Under Security-Based Swap Rules

The cryptocurrency industry might soon be flooded with different kinds of rules to checkmate its operations. The recent developments in the sector point towards a new SEC rule that will guide the security swaps occurring in many financial assets, including crypto.

This information came from the SEC Chairman during a speech he gave to the American Bar Association Derivative & Future Law Committee.

While speaking, Gary Gensler outlined the changes that will take place on security-based swaps in 2022. According to Gary, these changes will ensure that transparency exists in such transactions and reduce the risks associated with the market.

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The new requirements will take off in November and include internal risk management, new counterparty protections, new capital & margin requirements, trade acknowledgment & confirmation, record keeping & reporting procedures, and supervision & Chief compliance officers. In addition, from February 2022, the SEC will mandate swap data repositories to publicize data about individual transactions.

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Due to these rules, Gary mentioned that he had asked staff to embrace ways that can

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