SoFi: If the SEC's proposed rule takes effect, the company's encryption business may face major risks

Odaily Planet Daily News Financial technology company SoFi said in its quarterly 8-K report that the US SEC readjusted its regulatory ATS and the regulator's "Exchange Law Rules" in April, which will affect the composition of cryptocurrency exchanges. If the proposal is passed, entities that qualify as exchanges would face stricter regulation for facilitating the trading of crypto assets that are considered securities, and their crypto operations could therefore be at significant risk. SoFi said in the filing: “Pending the final passage of the proposed rule, we may need to obtain additional regulatory licenses to operate. The time and cost of obtaining such licenses may be significant and cannot be guaranteed. In addition, we may need to suspend or Alter certain aspects of our business until such clearance is obtained." SoFi is trying to grow rapidly in the crypto market while ensuring compliance. Industry players say public companies offer more than just cryptocurrencies, with an inherent risk that hefty fines for cryptocurrency violations could negatively impact other sectors. The most dire outcome, according to the company, is that it could "eventually be forced to cease such (encrypted) activities for a short period of time." (Blockworks)