Crypto Platforms’ Ties to Hedge Funds Under Fire in SEC Rule
- Agency seeking to impose new standards to hold client assets
- Plan would expand agency’s ‘qualified custodian’ rules
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Crypto platforms could soon face a new set of hurdles to hold digital assets owned by clients of hedge funds and private equity firms in the US.
The Securities and Exchange Commission on Wednesday proposed expanding its “qualified custodian” requirements to cover a range of assets, including virtual currencies. The broad changes to those long-standing rules might hit the crypto industry particularly hard as it continues to reel from a regulatory crackdown.