The SEC has announced that the Division of Corporation Finance’s Disclosure Review Program (DRP) will be supplemented with an Office of Crypto Assets and an Office of Industrial Applications and Services later this fall. The new offices will connect with the seven existing offices that provide focused review of issuer filings.
The SEC recognized the need to provide enhanced support in the DRP’s Office of Finance and its Office of Life Sciences due to the recent surge in the crypto asset and the life sciences industries. The SEC anticipates that the development of these new offices will help the DRP strengthen its focus in the areas of crypto assets, financial institutions, life sciences, and industrial applications an services. The SEC expects the Division’s new offices will facilitate its ability to advance its foundational mission to protect investors and promote capital formation.
Office of Crypto Assets
The Office of Crypto Assets will assume the responsibility (currently conducted across the DRP) to review filings involving crypto assets. Having one office handle companies and filings would allow the DRP to improve the way it utilizes its resources and expertise to treat the unique and changing filing review issues concerning crypto assets.
Office of Industrial Applications and Services
The Office of Industrial Applications and Services will now be responsible for the companies that supply non-pharma, non-biotech, and non-medicinal products, a role currently assigned to the Office of Life Sciences. The life sciences industry has experienced significant growth in recent years, which has given rise to the number of filings and companies assigned to that office. The DRP staff will now be able to better build specialized expertise in this space by shifting a subset of these companies to a separate group.