The Securities and Exchange Commission (SEC) on June 5, 2024 initiated its biennial collection of Diversity Self-Assessment Submissions from regulated entities, including those in the crypto sector. This initiative provides organizations the opportunity to thoroughly review their diversity and inclusion policies, identifying strengths, opportunities, risks, and vulnerabilities.
The SEC leverages the data from these submissions to evaluate and report on progress and trends in diversity-related activities among regulated entities. According to Nathaniel H. Benjamin, Director of the Office of Minority and Women Inclusion (OMWI), “The participation of regulated entities in submitting diversity self-assessments is critical for a more comprehensive understanding of the diversity practices and policies that are being implemented as well as to share information on practices and identify opportunities.”
Submitting a diversity self-assessment is voluntary and is not part of the SEC’s examination process. Regulated entities, including those in the crypto industry, are encouraged to use the Diversity Self-Assessment Tool (DSAT) provided by the SEC, though they may also submit their assessments in a format of their choice.
OMWI has published a set of Frequently Asked Questions to provide additional guidance about the voluntary self-assessments and the DSAT.
For crypto entities, this invitation to submit diversity self-assessments underscores the importance of fostering inclusive practices within the rapidly evolving sector. By participating, crypto firms can benchmark their diversity efforts against broader industry standards, potentially uncovering areas for improvement and reinforcing their commitment to equitable practices. This proactive engagement is crucial for building trust and credibility in the eyes of regulators and the public.
