CFTC, SEC Support New Rule for Hedge Funds With Crypto Exposure
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11 August

The Commodity Futures Trading Commission (CFTC) has supported new rules proposed by the US Securities and Exchange Commission that would require detailed disclosures for large hedge funds that have crypto exposure.

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The rule, CFTC says, reflects the lessons "learned over the past decade of private funds filing with the SEC." The agency added:

"The proposed amendments are designed to improve the utility of Form PF data to enhance the Financial Stability Oversight Council’s ability to assess systemic risk as well as to bolster the oversight of private fund advisers in light of the growth of the private fund industry."

With new amendments, regulators want to increase transparency of hedge funds as the crypto market recently witnessed a tremendous crash of large crypto funds that had close ties to the traditional economy.

The rule — once it accepted — would require advisers and large hedge funds with a net asset value of at least $500 million and crypto exposure to report more information when filing Form PF with the SEC.

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