The United States Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC), are proposing a change to reporting rules that would require large advisers to certain hedge funds to disclose digital asset exposures more “accurately”, according to a report by Reuters.
The proposed change to the existing Form-PF requirements would apply to funds of at least $500 million and would see declarations of cryptocurrencies switched from “cash and cash equivalents” to a new category aimed at providing more accurate reporting.
The two US regulators believe that due to growth in the hedge fund industry and with digital assets investing having become far more widespread since the orginal Form-PF requirements were introduced in 2008, securing more accurate information about cryptocurrency exposure will allow the Financial Stability Oversight Council to better assess potential risks to the US economy.
