In the second quarter of 2023, the International Organization of Securities Commissions (IOSCO) will begin a consultation for its regulation report on crypto assets. The dates are mentioned in the IOSCO work programme for 2023-24. The organisation’s final recommendations are expected to be released by the end of 2023.
The IOSCO is an organisation of securities and futures commissions. Its board of directors includes 35 regulators and prominent executives, including the leaders of the US Commodity Futures Trading Commission, the US Securities and Exchange Commission, and the UK Financial Conduct Authority, among others.
There are two major aspects to the task force plan. The first is about crypto and digital assets, while the second is about decentralised finance. (DeFi). The DeFi consultation will begin in Q3 of 2023. According to the work programme text, the IOSCO will focus on investor protection in both sectors of the digital market.
“Through the outcomes of its work, IOSCO seeks to support the development of sustainable and innovative capital markets, while enhancing investor protection, maintaining market integrity, and reducing systemic risk.”
When it comes to DeFi, the IOSCO recommended national regulators to get “a granular and holistic understanding of the DeFi market,” which might improve their capacity to craft necessary legislation.
In the past, the organisation issued research on DeFi, stablecoins, and influencers in 2022. The IOSCO proposes that national regulators develop supervisory capacities such as regulatory routes to submit consumer concerns about deceptive and unlawful marketing, as well as evidence-tracking systems to deal with the quick pace and changing nature of online content.
The IOSCO and the Bank for International Settlements presented the 2022 study on stablecoins. The stablecoin arrangement is defined by both authorities as “combining a range of functions to provide an instrument that purports to be used as a means of payment and/or store of value.”
Setting up of crypto regulations is coming at a good time since the situation in the US crypto market seems to be tense. The crypto industry and the SEC has engaged in a headlock fight. The SEC has been issuing Wells notices to multiple crypto and crypto-friendly firms. Demands to set up a proper rules and regulations for the crypto industry have been made. The SEC Chair, Gary Gelsner is scheduled to come in front of Congress to defend his actions against the crypto industry.