US SEC Investigates Investment Advisors About Crypto Regulations By CoinEdition

• The US SEC is investigating registered investment advisors about following crypto regulations.
• Anonymous sources reported that the SEC is interrogating advisors’ efforts to cohere to agency regulations for custody of clients’ digital assets.
• The SEC is asking investment advisors about the steps taken by their companies to access custody of firms including FTX.

The U.S. Securities and Exchange Commission is investigating registered investment advisors to determine whether they are complying with regulations regarding the custody of client cryptocurrency assets, reported three sources with access to the investigation.

Since the collapse of cryptocurrency exchange FTX, the SEC has been investigating advisors’ efforts to adhere to agency regulations regarding custody of clients’ digital assets, but the investigation has picked up steam, according to the sources. They agreed to speak on the condition of anonymity because the probes are private.

Advisors who are in charge of a client’s digital assets frequently store them with a third party.

According to one of the sources, SEC enforcement personnel are requesting information from investment advisors on the steps taken by their companies to acquire custody for platforms like FTX. The extensive enforcement campaign, which has not previously been publicize …

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