The U.S. Securities and Exchange Commission (SEC) has created a new executive position to lead the regulator’s response to the emerging sector of digital assets, the regulator announced on Tuesday.
The SEC has named Valerie Szczepanik associate director of the division of corporation finance and senior advisor for digital assets and innovation.
She will co-ordinate efforts across all SEC divisions and offices regarding the application of U.S. securities laws to emerging digital asset technologies and innovations, including initial coin offerings and cryptocurrencies.
Previously, Szczepanik was assistant director in the SEC enforcement division’s cyber unit. She is also the head of the SEC’s distributed ledger technology working group, co-head of its dark web working group, and a member of its fintech working group.
“Valerie’s thought leadership in this area is recognized both within the commission and across financial regulators in the United States and abroad. With her demonstrated skill, experience, and keen awareness of the importance of fostering innovation while ensuring investor protection, Val is the right person to co-ordinate our efforts in this dynamic area that has both promise and risk,” says Jay Clayton, SEC chairman in a statement.
Separately, the SEC announced has adopted a new rule that will let investment funds provide unitholder reports by posting them online and provide investors with a paper notice by mail. Funds can begin using the approach as of Jan. 1, 2021.
“The new rule significantly modernizes delivery options for fund information while preserving the right of fund investors to receive information in paper form as they do today,” says Clayton.
The securities industry endorsed the move. The Securities Industry and Financial Markets Association (SIFMA) “has long-supported efforts to expand the opportunity for electronic delivery of shareholder reports,” says Kenneth Bentsen, Jr. president and CEO of SIMFA, in a statement.
Additionally, the SEC is seeking comment from retail investors, academics, literacy and design experts and the investment industry on other ways to modernize fund disclosure. In particular, the SEC is looking for input on using technology to make disclosure more interactive and personalized.
The SEC is also seeking comment on the fees that broker-dealers and other intermediaries charge funds for delivering fund disclosure.
The deadline for comments on both proposals is Oct. 31.