The Securities and Exchange Commission is probing investment advisers for potential misconduct involving cryptocurrencies, signaling a new direction in its oversight of the emerging market, Politico reported. The regulator is focusing on how investment advisers registered with the agency are storing the cryptocurrency assets they hold, as well as on possible price manipulation, and the digital currencies' vulnerability to cyberattacks. The investigation marks an escalation of the SEC’s scrutiny of the digital currencies. In the last year, the agency has halted a number of initial coin offerings, and Chairman Jay Clayton has warned that it will vigorously police the industry. Notably, the SEC is looking beyond the type of fraud cases that it has brought so far and is now hunting for violations involving the agency's custody rule for assets, valuation and cybersecurity. Read more.
Don't miss the "Cryptocurrency, Blockchain and Other Breaking News" session at ABI's Winter Leadership Conference in December. This panel will discuss the impact of cryptocurrencies on the financial industry and how to litigate the complex issues they bring. Click here to register.
