Market

SEC Removes Definition Of “Digital Asset” In Latest Hedge Fund Rules

Key Points:

  • The U.S. Securities and Exchange Commission has removed the first official definition of “digital asset” in its latest household hedge withdrawal rules.
  • The Commission and staff continue to review the term and do not apply digital assets as part of this rule.
  • This week’s hedge withdrawal rule’s initial definition for a digital asset was not expansive or controversial.
In removing the first official definition of “digital assets” from hedge fund rules, most recently on Wednesday, the U.S. Securities and Exchange Commission (SEC) took a small step back in its efforts. The force that regulates the cryptocurrency industry.

Although the SEC originally included this definition in its 2022 proposal. Mandatory disclosure reform for household rooms, in the final rule approved by the commissioners, the regulator The censorship securities regulator has eliminated this definition.

“The committee and staff are continuing to review the term and do not apply ‘digital assets’ as part of this rule at this time,”

The note stated.

Despite the decision to withdraw this decision, the agency is undoubtedly still looking into crypto issues as they have a significant impact on both their ongoing enforcement actions and regulatory proposals. Last month, the regulator effectively reversed course by revisiting a previously proposed rule that would clearly redefine the term “exchange” and include decentralized finance (DeFi).

The industry and two of the five SEC commissioners harshly criticized that amendment, which is among a number of recent policy changes that aim to incorporate cryptocurrencies into existing regulations explicitly. Another proposal from the SEC in February could ban financial advisors from maintaining assets in crypto businesses.

The original definition proposed for a digital asset in this week’s hedge fund rules did not expand or cause controversy, describing something like “using distributed ledgers or blockchain technology.” and includes “so-called ‘virtual currencies,’ ‘coins’ and ‘tokens.'”

But a lobbying organization for the industry, the Securities Industry and Financial Markets Association objected to the definition’s wording, saying that it “captures non-security digital asset classes, including commodities, bitcoin, and non-fungible tokens, but it is unclear whether the definition intended to capture any digital assets as opposed to all securities.” Sifma had therefore requested that the definition be more precise.

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 us to keep track of news: https://linktr.ee/coincu

Foxy

Coincu News

Victor

Recent Posts

Dogecoin Price Gets $5 Prediction, Shiba Inu To Rally 1,100%, And ETFSwap (ETFS) To Jump 135x

Here are the latest predictions for Dogecoin, Shiba Inu, and ETFswap.

2 hours ago

AVAX Hits $1B in DeFi, Cardano Expected to Surge—BlockDAG Leads with $110M Presale & 100% Bonus!

Discover BlockDAG's 100% bonus and $110M presale surge that’s sparking interest among crypto enthusiasts. Also,…

2 hours ago

Crypto Institutional Investors Move To ETFSwap (ETFS) Amid $500 Million Liquidity Injection Expectations

Discover why crypto investors are moving to ETFSwap (ETFS) as $500 million liquidity injection is…

5 hours ago

Buyers Rush to Maximise Gains with BlockDAG’s 100% Bonus Offer; Plus, ETH Holds Strong as Solana Challenges Rivals

Learn about BlockDAG's $110M presale achievement and the whopping 100% bonus offer, alongside Ethereum's growth…

7 hours ago

Thai Police Corruption Case Involving Officers and Extortion

Thai police corruption exposed as officers extort millions in USDT from a Chinese man under…

10 hours ago

SafePal Telegram Wallet Launches with Swiss Bank Accounts and CeDeFi

SafePal Telegram Wallet allows 950 million users to create compliant crypto-friendly Swiss bank accounts, integrating…

11 hours ago

This website uses cookies.