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Bitcoin Price To Struggle More? Financial market regulators are gearing up with enhanced and much needed laws around the digital asset industry. In this pursuit, the U.S. Securities and Exchange Commission (SEC) has launched an investigation into registered investment advisers, stated a report.
SEC going after Wall Street Biggies?
As per a report, registrar investment advisors have landed under the scrutiny of the SEC. The watchdog is checking whether they are following the rules around clients’ digital assets in custody. This move comes after the crypto industry saw a disaster of SBF’s FTX which led to a horrible market crash.
The SEC officials are questioning advisors’ preferred process to gain custody for platforms including FTX, mentioned the report. However, consultants usually procure clients’ digital assets through a third party in order to store them. This latest probe directly signals that the watchdogs are stepping up to expand their radars around the traditional firms.
The latest move also suggests that the SEC is now pursuing to go after wall street biggies looking for ways to invest in crypto. The report further highlighted the watchdog’s accounting rules have made it difficult for lenders to hold crypto for their clients. This leaves very limited options for consultants seeking custodians.
The global digital asset market cap recently regained the crucial $1 trillion mark. Bitcoin price which ones dropped to trade in the range of $16k. However, BTC is trading at an average price of $23,034, at the press time.
Big trouble for custodians?
Investment advisors mostly deal in the biggest cryptos like Bitcoin and Ethereum. It is expected that Bitcoin price might see some resistance ahead but the crypto market will gain clarity over regulations.
However, the law doesn’t give the investment advisers to hold custody of clients’ funds or securities. It depends on the criteria involved to protect assets. Meanwhile, the commission does not have a certain list of offering licenses to become custodians in the market.
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