Crypto Market To Struggle More? Financial market regulators are gearing up with enhanced and much needed laws around the digital asset industry. In this pursuit, the U.S. Securities and Exchange Commission (SEC) has launched an investigation into registered investment advisers, stated a report.
SEC going after Wall Street Biggies?
As per a report, registrar investment advisors have landed under the scrutiny of the SEC. The watchdog is checking whether they are following the rules around clients’ digital assets in custody. This move comes after the crypto industry saw a disaster of SBF’s FTX which led to a horrible market crash.
The officials are questioning advisors’ preferred process to gain custody for platforms including FTX, mentioned the report. However, consultants usually procure clients’ digital assets through a third party in order to store them. This latest probe directly signals that the watchdogs are stepping up to expand their radars around the traditional firms.
The latest move also suggests that the SEC is now in pursuit to go after wall street biggies which are looking for ways to invest in crypto. The report further highlighted the watchdog’s accounting rules have made it difficult for lenders to hold crypto for their clients. This leaves very limited options for consultants seeking custodians.
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