Cryptocurrency investment funds need to be looked into, says SEC official


Speaking at the ICI Securities Law Developments Conference in Washington, D.C., on Thursday, Dalia Blass said that the Securities and Exchange Commission is evaluating the newly-registered funds that plan to hold cryptocurrencies.

Dalia, who is the Division of Investment Management director at Securities and Exchange Commission’s investment management office, offered insight into how the agency involved in policing investment activities in the United States and said that SEC is currently grappling with some of the issues posed by cryptocurrency investment funds.

According to a transcript, Dalia said:

“We also continue to think about new innovations in asset management. For example, we have seen several filings for registered funds that would hold cryptocurrency. As with any new product, there are questions to ask,”

Some of the questions that need to be answered include how to differentiate different types of assets and also whether potential investors are made aware of the potential risks of investing in this new market. She added:

“How would these funds fit into the existing regulatory scheme? What regulatory structure or structures apply to the market for the underlying instrument? We will be discussing these questions with you as we work through these filings.”

SEC is becoming more increasingly involved in the cryptocurrency market, as they recently came out and said that they would police initial coin offerings (ICOs) that would involve US investors. In September, SEC charged a New York businessman for allegedly launching fraudulent token sales and recently the Cyber Unit of SEC filed fraud charges against the organizer of an ICO that had previously been the target of regulators in Canada.

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