SEC Bolsters Staff To Police Crypto Firms

1. SEC intensifies monitoring of the crypto market.
2. Proposed rule to enhance custodian role for RIAs.
3. Public Citizen backs SEC’s fight against crypto fraud.

Recent reports indicate that the Securities and Exchange Commission is intensifying its attempts to investigate and penalize cryptocurrency businesses. Consequently, the agency intends to increase its monitoring of the digital asset market in response to growing worries about the safety of its investors and the viability of its market.

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Further, the US Securities and Exchange Commission (SEC) has proposed expanding and enhancing the role of qualified custodians when registered investment advisers (RIAs) custody assets on behalf of investors.

According to SEC Chair Gary Gensler, the proposed rule aims to provide investors with added protections and peace of mind by ensuring that reputable and experienced custodians hold their assets. 

Gensler went on to say that under the rule, RIAs would be required to use qualified custodians to hold and safeguard client assets. As a result, it would help mitigate the risk of theft, fraud, or misappropriation.

Notably, the move is part of the SEC’s ongoing efforts to strengthen investor protections and ensure that RIAs act in their client’s best interests. If the rule is adopted, it will mark a significant step forward in safeguarding investor assets and promoting greater transparency and accountability in the investment industry.

In addition, a non-profit consumer advocacy organization PublicCitizen wrote to the SEC to back its fight against fraud in the cryptocurrency industry. The signatories of the joint statement praised Gary Gensler’s direction of the SEC and its efforts to combat fraudulent, manipulative, and deceptive behavior in the cryptocurrency markets.

In conclusion, as the cryptocurrency market continues to evolve and gain mainstream acceptance, it will be increasingly important for regulators to take steps to protect investors and ensure the market’s integrity.

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