(Reuters) — The U.S. Securities and Exchange Commission is investigating registered investment advisers for compliance with rules surrounding the custody of clients’ crypto assets, three sources with knowledge of the investigation told Reuters.
The SEC has been questioning advisers’ efforts to comply with the agency’s rules surrounding the safekeeping of clients’ digital assets for months, but the probe has gained momentum in the wake of the blowup of crypto exchange FTX, the sources said. They spoke on condition of anonymity because the inquiries are not public.
Advisers managing clients’ digital assets typically use a third party to store them.
The SEC̵
7;s regulatory staff is asking investment advisers for details on what the firms did to assess the stewardship of platforms including FTX, one of the sources said. The broad application, which has not been reported before, is a sign that top U.S. market regulators’ scrutiny of the crypto industry is expanding to more traditional Wall Street firms.An SEC spokesperson declined to comment.
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