Public comment is invited by the SEC and CFTC on a proposal to include digital assets in the reporting system for hedge funds. This request for comments addresses some fundamental questions regarding how to classify and define different digital assets.
Regulators need your help to create a reporting system for private funds that exposes them to crypto.
The Securities and Exchange Commission and Commodity Futures Trading Commission issued a request to comment on proposed changes for Form PF.
The SEC, CFTC and CFTC regulate the U.S. financial market. The confidential Form PF, which hedge funds submit to the SEC in order to report their exposures to certain assets, is what they do.
It was created after 2008’s financial crash. This was largely due to opaque private funds holding junk assets, most notably subprime mortgages.
Opportunity to add comments to end October 11The Form currently does not mention digital assets. The two regulators reached an agreement to jointly propose adding digital asset reporting in August.
The request for comments explains that the proposal would create a new sub-asset for digital assets and define the term “digital asset”.
Accordingly, the questions in the request to comment are very foundational. Should reporting entities be required to identify their holdings by name, type of digital asset, or should different standards be applied for fiat-redeemable stablecoins and central banks digital currencies? And should tokens that represent equity belong to another class?