SEC Probes Advisers Over Crypto Custody Guidelines: Report
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The US Securities and Exchange Commission (SEC) is probing advisers on whether they are meeting guidelines on how cryptocurrencies should be stored in custody, Reuters has learned, citing sources familiar with the matter.

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While details are unknown, the SEC is reportedly asking investment advisers about how they access crypto stored at third party providers as they cannot have custody of client funds by law. It is also unclear if the regulator reached out to crypto custodians to review their security measures.

Earlier, The Wall Street Journal reported that the SEC started blocking crypto-related companies from going public as the crypto market is trying to recover from a cascade of bankruptcies.

Grayscale CEO: SEC is Behind Schedule in Crypto Sector Regulation

As per the report, crypto exchange Bullish, USDC issuer Circle and fintech firm eToro had failed to secure approvals from the SEC required for companies before going public. Although the SEC didn't try to stop the companies from going public, people close to the matter said that the companies repeatedly received a variety of questions from the regulator regarding their businesses.

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