Insights Into The SEC Accelerated Regulatory Incubation Program Framework

Introduction

The Securities and Exchange Commission (SEC) on June 28 2024, released the Framework on Accelerated Regulatory Incubation Program (ARIP) for the onboarding of Virtual Assets Service Providers (VASPs) and other Digital Investments Service Providers (DISPs). The ARIP Framework (the "Framework") aims to streamline the onboarding process for current and potential entities seeking registration as VASPs by the SEC, and overall, to enhance compliance with the SEC's regulatory standards.

This article answers key questions regarding the ARIP Framework and provides relevant guidance for entities seeking to participate in the ARIP.

1. What is the Objective of the ARIP?

In addition to fast-tracking the onboarding of entities applying to the SEC and potential applicants seeking registration, participation in the ARIP grants entities preliminary approval to operate as VASPs pending the implementation of the Digital Assets Rules which regulate VASPs and other