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Home Crypto US SEC to Curb Hedge Funds and Pension Funds From Crypto Custodian Collaborations

US SEC to Curb Hedge Funds and Pension Funds From Crypto Custodian Collaborations

by Stew Lane
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US SEC to Curb Hedge Funds and Pension Funds From Crypto Custodian Collaborations

The sudden surge in crypto volatility has been a major headache for regulators worldwide, prompting them to take drastic measures.

As a part of this process recently the U.S. Securities and Exchange Commission (SEC) decided to take strict measures against crypto custodians. The news gained significant popularity among internet users, many users voiced their opinions about the latest development on twitter.

SEC’s involvement might obstruct hedge funds, pension funds, and private equity firms from forming partnerships with crypto custodians. This strict regulatory environment will likely impede the relationship between these two industries and constrain their collective growth trajectory.

This is despite apparent enthusiasm from both sides – provided they can navigate the perilous waters of compliance bureaucracy.

When will the Regulation be expected to arrive?

On February 15th, the US SEC is expected to unveil an initiative that could make it harder for crypto firms to acquire qualified custodian status. This would be a major impediment for these companies in terms of their ability to safely store digital assets on behalf of their clients.

How will this upcoming Regulation Impact Crypto enthusiasts?

Crypto experts have been left scratching their heads after this news broke out. If implemented, these alterations could mean a seismic shift for big-money players who use digital currencies as part of their trading strategies.

The sources were unable to provide specifics on what exactly the SEC was proposing, but they did point out that existing custodial relationships and other checks could be subject to surprise audits by the agency.

This would severely hamper the operations of any investors who are actively investing in crypto assets. In addition, these investors may be forced to shift their funds elsewhere due to new restrictions. Hence, crypto entrepreneurs need to keep abreast of developments as this story unfolds!

Stew Lane

Stew Lane's contributions as a crypto author extend beyond his writings. He actively engages with the crypto community, participating in conferences, industry events, and online forums, where he shares his knowledge and insights. His collaborative nature and commitment to fostering dialogue have earned him respect and admiration among his peers and crypto enthusiasts.

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