The U.S. Securities and Exchange Commission (SEC), has announced that it is modernizing its filing fee disclosure and payment methods to a new system that would require operating companies and investment companies, including crypto firms and exchanges, to “pay filing fees when engaging in certain transactions.”
According to the SEC’s official press release on the matter, the amendments will also add new options for Automated Clearing House (ACH) and debit and credit card payment of filing fees. This means that crypto firms working with and doing these same functions may incur more fees, leading to higher servicing costs for consumers and average crypto users.
“The Commission voted unanimously to modernize how filing fees are reported, calculated, and paid. I am pleased to support this final rule. These updates, which will be phased in over the coming years, will make the filing process faster, less expensive, and more efficient for SEC staff and market participants.” shared SEC Chair Gary Gensler.
As CryptoDaily has reported, payment technology firms such as PayPal, Mastercard, and now even Stripe, are examining blockchain technology for use on their payment platforms. The fact that the SEC is ‘modernizing’ its payment systems for filings as well, is a testament to how governments are trying to catch up on crypto, implementing laws on an continuously evolving technology that has proven difficult to regulate.
In a speech to the Texas Blockchain Summit, SEC Commissioner Hester Peirce opined:
“Because crypto is built on code, the code itself serves as a governor of conduct. But crypto is built on people too, and these people hold each other accountable not only through unbridled public discourse, but through using or not using a protocol.”
The impact of this new system to crypto firms is significant, in that it would now include tighter regulatory oversight on registered securities offerings, tender offers, and mergers and acquisitions. As the crypto industry grows and expands, more and more partnerships between companies and decentralized organizations tend to happen, in an effort to link up the space’s functionalities and services. With the SEC’s new amendment to its filing fee disclosure and payment methods, stricter regulatory oversight over financial technology and crypto firms is on the horizon.
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