The US Securities and Exchange Commission (SEC) is preparing to submit a joint proposal for cryptocurrencies together with the Commodity Futures Trading Commission (CFTC).
The US Securities and Exchange Commission (SEC) is preparing to submit a joint proposal for cryptocurrencies together with the Commodity Futures Trading Commission (CFTC).
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Regulators are seeking to learn more about the potential risks of crypto assets to the US economy due to the collapse in the cryptocurrency industry.
According to the proposal, hedge funds with more than $500 million in net assets will report their cryptocurrency investments to the regulator using the PF form created in the wake of the 2008 financial crisis. In addition, funds will have to provide information on portfolio concentrations and borrowing arrangements.
SEC Chairman Gary Gensler used the following statements in his statement after the meeting:
“I am pleased to support the proposal. Because I believe that if the proposal is accepted, the quality of the information we get from all PF files will increase, especially focusing on the advisors of large hedge funds.”
According to the SEC’s report, the number of private funds increased by about 55 percent between 2008 and the third quarter of 2021.
SEC Examines Exchanges
Cynthia Lummis, a US Senator and a Bitcoin advocate, claimed that the regulator has put all cryptocurrency exchanges in the country under scrutiny.
The SEC recently announced that 9 cryptocurrencies listed on Coinbase are securities.
