SEC Planning New Rule Change for Crypto That Makes It Harder for Hedge Funds To Work With Industry: Report
A brand new proposal from the U.S. Securities and Change Fee (SEC) is reportedly going to make it tougher for hedge funds to work with the crypto trade.
In keeping with Bloomberg, the SEC could advance a proposal that may create difficulties for crypto corporations to change into “certified custodians,” which is a regulatory designation that enables corporations to carry prospects’ property for safekeeping.
Bloomberg cites nameless sources with information of the proposal, however it’s presently unclear as to how the SEC plans to make it tougher for companies trying to work within the nascent trade to change into certified custodians.
If the SEC approves the rule proposal, institutional funds which have already made a foray into crypto could must relocate the investments or face shock audits, together with different problems, in response to Bloomberg.
The rule can advance towards approval if a majority the of five-member SEC votes in favor of it. If authorized, the SEC will hunt down public suggestions that it’s going to consider earlier than a remaining spherical of votes.
The proposed rule would characterize the most recent enforcement motion the SEC is taking within the aftermath of FTX’s high-profile implosion. Different strikes include shutting down Kraken’s staking program for its purchasers and imposing a $30 million fantastic on the US-based crypto change.
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