SEC withdraws its definition of digital assets from the new hedge fund regulations

by May 4, 2023CryptoNews0 comments

Despite proposing a definition of the phrase around nine months ago, the SEC and its staff are “continuing to consider” it.

Despite having proposed it almost nine months ago, the U.S. securities commission is delaying the approval of the definition of “digital assets” in the regulations governing reporting disclosures for hedge and private equity funds.

The Securities and Exchange Commission updated Form P.F. on May 3. This form is used by SEC-registered funds to provide the SEC with basic fund information so that the regulator may evaluate any possible “systemic risks.”

The SEC first proposed the modifications in an August 2022 proposal that included a description of digital assets. If it had been implemented, it would have been the first time the SEC has defined “digital assets.”

Today, the regulator announced that it would not add the definition, at least not immediately.

“We proposed adding ‘digital assets’ as a new term to the Form PF Glossary of Terms. The Commission and staff are continuing to consider this term and are not adopting ‘digital assets’ as part of this rule at this time.”

The SEC’s definition of digital assets included phrases like “virtual currencies,” “coins,” and “tokens,” as well as an item “that is issued and/or transferred using distributed ledger or blockchain technology.”

The SEC stated in its proposal from August that the existing reporting of information about a fund’s digital assets under the “other” category leads to “less robust Form P.F. data for analysis.”

See also  Coinbase, Celsius, and Paxos disclose money in Signature Bank

It developed the term to acquire distinct reporting on these assets and, consequently, more accurate reporting.

“We believe it is important to collect information on funds’ exposures to digital assets in order to understand better their overall market exposures.”

But as a likely response to the U.S. banking crisis, the most recent revisions to the SEC’s Form P.F. rules now demand, along with other new requirements, that SEC-registered funds report the occurrence of significant events that could signal systemic risk or harm to investors.

As the SEC attempts to shed light on the multi-trillion dollar industry, companies must also disclose specifics of their fees and expenses.

The SEC hasn’t always avoided defining terms linked to cryptocurrencies; in mid-April, it declared that it would review its definition of an “exchange” and may add decentralized finance (DeFi).

Recent News

Recent Posts

Disclaimer: The information provided on this website is for informational purposes only. We strive to ensure the accuracy and reliability of the content, but we make no representations or warranties of any kind, express or implied, regarding the completeness, accuracy, reliability, suitability, or availability of the information. The use of this website is solely at your own risk.
We do not endorse or promote any specific cryptocurrencies, projects, exchanges, or investments mentioned on this website. The inclusion of any external links does not imply endorsement or recommendation.
Please note that the cryptocurrency market is highly volatile and involves substantial risks. You should carefully consider your own financial situation and risk tolerance before engaging in any cryptocurrency-related activities.

Related Post

Binance to Stop Supporting BUSD by February 2024

Binance to Stop Supporting BUSD by February 2024

Binance, the world's largest cryptocurrency exchange by trading volume, has announced that it will gradually cease support for its BUSD stablecoin, which is pegged to the US dollar, by February 2024. The move follows Paxos' decision to halt minting of new BUSD earlier...

Coinbase Stock Hits Record High as Binance Faces Legal Troubles

Coinbase Stock Hits Record High as Binance Faces Legal Troubles

Coinbase, the largest cryptocurrency exchange in the US, saw its stock price soar to an all-time high of $420 on Friday, November 24, 2023, amid a bullish market for digital assets. The company's market capitalization reached $110 billion, surpassing that of major...

0 Comments

Submit a Comment

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