News

SEC, CFTC Want Private Funds To Report Crypto Holdings

The US Securities and Exchange Commission (SEC) and the US Commodity Futures Trading Commission (CFTC) are looking to add new levels of disclosure applicable to large hedge funds and private property management companies. In it, they require such companies to report their cryptocurrency exposure.
SEC, CFTC Want Private Funds To Report Crypto Holdings 4

In a statement yesterday, the SEC said it voted on the proposed amendment to Form PF. The additional regulation will increase scrutiny of major private asset managers, requiring them to disclose cryptocurrency locations and other information. In addition, the SEC and CFTC are considering supporting the amendment.

As part of an effort to monitor the private wealth management industry as a whole to avoid systemic risk, the proposal would also force companies to report on loan and loan agreements, other market exposures, and investment strategies.

SEC, CFTC Want Private Funds To Report Crypto Holdings 5

The proposal would require companies to report exposure through Form PF. This form was compiled after the 2008 financial crisis to help the regulator oversee the private asset management market for bubbles and other stability risks.

The SEC and the US Federal Reserve (Fed) will use the data collected from the form to publish aggregate industry statistics. The proposal also recommends amending and extending the Form PF.

SEC, CFTC Want Private Funds To Report Crypto Holdings 6

The SEC says the new reporting requirements will apply to companies with a net worth of at least $500 million.

According to SEC Chairman Gary Gensler, the purpose of the new reporting requirement is to monitor undercover markets for signs of overexposure, bubbles, and other possible systemic risks that could affect the entire financial industry.

“I am pleased to support the proposal because, if adopted, it would improve the quality of the information we receive from all Form PF filers, with a particular focus on large hedge fund advisers.” 

While not limited to the crypto industry exclusively, the move shows the SEC’s increasingly hawkish attitude towards crypto, especially Gensler.

The CFTC itself is in dispute with the SEC over its jurisdiction to regulate cryptocurrencies, but such progress represents like-minded government agencies on how large funds should report crypto holdings.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

Recent Posts

Best Cryptos to Invest in December 2024: Qubetics Surges Past $2.6M as Solana Records Big Whale Pump and Polkadot Aims for $6

Best Cryptos to Invest in December 2024: Qubetics surges past $2.6M, Solana’s whale pump ignites…

14 minutes ago

Bitcoin Trader Turned $100M in His 20s—Now Reveals 5 Altcoins to Build a $50M Portfolio, With Memecoins Leading the Way!

As Bitcoin reaches unprecedented heights and the market surges, he's highlighting five altcoins poised for…

2 hours ago

Which Crypto Will Explode in the 2024-2025 Bull Run?

With the crypto market reaching new peaks, many are eager to discover digital currencies poised…

2 hours ago

Dogecoin and Shiba Inu Approach $1, but All Eyes Are on XYZVerse’s Push to $10!

XYZVerse, blending sports passion with meme energy, is set to make a significant impact, uniting…

2 hours ago

Will Bitcoin Crash or Soar Past $105K in 2024?

Will Bitcoin Crash?" seems to be one of the most controversial questions, as the price…

3 hours ago

The Best Crypto for Passive Income? 10% Weekly Gains and 20% Final Surge—Qubetics Mirrors Cosmos’ Early Success!

There’s always that one coin people wish they hadn’t overlooked. For many, Cosmos ($ATOM) is…

4 hours ago

This website uses cookies.