SEC Provides Room for More Crypto Understanding
According to recent reports, the US Securities and Exchange Commission is studying several crypto-brokerages and asking all related questions involving client operations, services, products, advisory offers and many more as a means of further understanding how the crypto-industry is functioning so efficiently.
The SEC has been investigating several cryptocurrency related brokerages as a means of acquiring further understanding about the ever-growing crypto market. As per reports, a few sources involved in the situation have stated that the US financial watchdog is conducting an additional examination into the subject due to consistent concerns regarding a misconduct-riddled market.
Several questions by the SEC have been directed towards these brokerages regarding how these companies operate and conduct business as well as clientele management. Additionally, investment advisors were also brought up among the questions asked. Along with the questions asked, the SEC is also looking to gather information about any charges generated as a result of trading, funding of ICOs.
Over the past year, cryptocurrency markets have been under strict observation from officials, mainly the SEC chair, Jay Clayton. The chairman has expressed worries regarding the crypto-market and believes that the initial coin offerings market is riddled with scams and fraud. Additionally, the US Department of Justice has conducted investigations related to manipulation of BTC value given that individuals are abusing it.
The SEC is aiming to acquire more details about how hedge funds value and price crypto-investments. Despite no comments by the chairman’s spokeswoman, Clayton says that these investigative inquiries are evidence that the SEC is attempting to fully understand the entire cryptocurrency industry and how it operates.
He adds that difficulties in organizing and ensuring maximum efficiency of the market are still ongoing. The main mission of the Office of Compliance Inspections and Examinations is to undergo investigations and closer inspection as a means of providing efficient security for investors and guarantee an honest and safe market. Earlier this year, the OCIE said that crypto and ICO markets have developed quickly and several threats are associated as a result. In light of this, the Office will focus on security measures and development as a means of ending cybercrime related to crypto.
While several brokerages have announced their collaboration with the US watchdog, other brokerages have yet to come forward. As per the NFA, it stated that more open access to firms is required for those involved in crypto.