Securities and Exchange Commission (SEC), the United States regulatory authority, hasn’t provided the definition of “digital assets” in rules around disclosures for hedge and private equity funds, as stated by Cointelegraph. 

According to Cointelegraph, on May 3, 2023, SEC unveiled amendments to Form PF, a form which enables the regulator to analyse “systemic risks.” It’s believed that through an August, 2022, proposal, SEC added a digital assets meaning for the implementations. 

“We proposed adding ‘digital assets’ as a new term to the Form PF Glossary of Terms. The Commission and staff are continuing to consider this term and are not adopting ‘digital assets’ as part of this rule at this time,” SEC highlighted in its latest statement. 

Based on Cointelegraph’s information, SEC’s definition of digital assets was an asset “that is issued and/or transferred using distributed ledger or blockchain technology,” comprising other terms such as “virtual currencies,” “coins” and “tokens.” “We believe it is important to collect information on funds’ exposures to digital assets in order to understand better their overall market exposures,” SEC mentioned.

However, Cointelegraph noted that recent SEC’s Form PF regulations now need reporting of events by SEC-registered funds that could express danger to investors with regard to US banking crisis. 

(With insights from Cointelegraph)

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