SEC & CFTC Call for Public Comment on Crypto Reporting for Hedge Funds

Please fol­low and like us:
Pin Share

The U.S. Secu­ri­ties and Exchange Com­mis­sion (SEC) and the Com­mod­i­ty Futures Trad­ing Com­mis­sion (CFTC) on Thurs­day launched pub­lic con­sul­ta­tions call­ing on the pub­lic to con­tribute to the pro­posed rule seek­ing to define the cryp­to hedge funds and their pub­lic disclosures.


The com­ment doc­u­ment for the pub­lic was made avail­able on the Fed­er­al Reg­istry site and seeks to col­lect the opin­ions of large hedge fund advi­sors and all fil­ers about their strate­gies for invest­ments as the com­mis­sion moves to con­sid­er pro­posed amend­ments for Form PF, a con­fi­den­tial report­ing form reveal­ing busi­ness day events for SEC-reg­is­tered invest­ment advis­ers to Pri­vate Funds and Cer­tain Com­mod­i­ty Pool Oper­a­tors and Com­mod­i­ty Trad­ing Advisors. 

”We also are solic­it­ing com­ment on the pro­posed rules and a num­ber of alter­na­tives, includ­ing whether cer­tain pos­si­ble changes to the pro­pos­al should apply to Form ADV” SEC and CFTC announced in a statement.

SEC amendments seek to increase hedge funds’ monitoring

Under the pro­posed amend­ments for Form PF or rule, SEC intends to bol­ster pri­vate equi­ty and cryp­to hedge funds rev­e­la­tions and increase mon­i­tor­ing of the indus­try to mit­i­gate poten­tial risks.
“The amend­ments are designed to enhance the Finan­cial Sta­bil­i­ty Over­sight Council’s (“FSOC’s”) abil­i­ty to mon­i­tor sys­temic risk as well as bol­ster the SEC’s reg­u­la­to­ry over­sight of pri­vate fund advis­ers and investor pro­tec­tion efforts” the state­ment read.

The reg­u­la­tors will also change the guide­lines of the Invest­ment advis­ers act of 1940 requir­ing “tem­po­rary hard­ship exemp­tion.”
“The pro­pos­al would add a new sub-asset class for dig­i­tal assets and define the term ‘dig­i­tal asset” the state­ment read in part.
The SEC Chair, Gary Gensler, last month told reporters that the pro­posed amend­ments requir­ing the largest finan­cial firms to report on their com­plex struc­ture will ensure trans­paren­cy.
“We can play a role by upping at least some of the trans­paren­cy.” Gary Gensler, the agency’s chair, told journalists.

Proposed scrutiny will be the biggest in 10 years

If the amend­ments for con­fi­den­tial fil­ings are con­sid­ered as pro­posed, they will become one of the largest reg­u­la­tions that mon­i­tor the pooled invest­ment fund trad­ing in liq­uid assets in over 10 years, accord­ing to ana­lysts. The reg­u­la­to­ry scruti­ny start­ed when the hedge fund delever­ag­ing threw tur­moil in the U.S. Trea­suries mar­ket in March 2020 and the “meme-stock” saga which was full of unclear assets prompt­ing the Biden admin­is­tra­tion to move reg­u­la­tors to put a wall on unclear pri­vate funds that have has an adverse effect on the markets.

For Be[In]Crypto’s lat­est Bit­coin (BTC) analy­sis, click here.

Disclaimer

All the infor­ma­tion con­tained on our web­site is pub­lished in good faith and for gen­er­al infor­ma­tion pur­pos­es only. Any action the read­er takes upon the infor­ma­tion found on our web­site is strict­ly at their own risk.

Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published. Required fields are marked *