SEC Turns Focus on Cryptocurrency Investment Advisors

The Securities and Exchange Commission, one of the US’ main financial regulators, is now investigating investment advisers over their links to cryptocurrency, according to Politico.

A new direction

Fund managers in charge of $100 million and more come under the SEC’s supervision. Citing “three people familiar with the matter”, the outlet says that the watchdog is interested in how these people are storing cryptocurrency, possible price manipulation, and cyber-security issues.

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This last point is because of the proven vulnerability of cryptocurrency entities to hacks. The SEC regulates how advisers store their customers’ money, but the old guidelines are not really relevant to digital assets.

This is a new direction for the SEC. Previously, it had mainly been concerned with the question of whether or not a token is a security, and it has been kept busy shutting down fraudulent initial coin offerings.