Cryptocurrencies
SEC Leans on Crypto Firms to Report Assets Held for Customers
- Guidance to provide more transparency to clients, agency says
- Clarifies how firms should applying existing accounting rules
The U.S. Securities and Exchange Commission headquarters in Washington, D.C.
Photographer: Al Drago/BloombergThis article is for subscribers only.
The U.S. Securities and Exchange Commission is pressing firms to account for crypto assets they’re holding on behalf of customers on their balance sheets.
A growing number of trading platforms are safeguarding digital assets for their users and maintaining the cryptographic keys necessary to access the tokens, the regulator said in staff guidance Thursday. However, they aren’t always disclosing those activities to investors even though they can lead to financial loss if the assets are stolen or misused, an SEC official said on a call with reporters.