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SEC, CFTC Weigh New Hedge Fund Crypto Regulations

 |  August 10, 2022

Federal regulators are set to issue a proposal that would — among other things — require large hedge funds to reveal their cryptocurrency exposure.

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    The U.S. Securities and Exchange Commission (SEC) voted Wednesday (Aug. 10) to propose amendments to Form PF, a confidential reporting form.

    “The amendments, which the Commodity Futures Trading Commission (CFTC) is concurrently considering to propose jointly with the SEC, are designed to enhance the Financial Stability Oversight Council’s (FSOC) ability to assess systemic risk as well as to bolster the SEC’s regulatory oversight of private fund advisers and its investor protection efforts in light of the growth of the private fund industry,” the SEC said in a news release.

    Created after the 2008 financial crisis, Form PF gives regulators important information on the inner workings of private funds, offering a picture that helps the SEC assess risk.

    “We now have almost a decade of experience analyzing the information collected on Form PF,” the commission said in its proposal.

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