The US Security and Exchange Commission (SEC) has developed a new set of rules that would make it harder for hedge funds, pension funds and other institutional investors to work with crypto firms.
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According to a report from Bloomberg, the financial regulator wants to make it harder for crypto businesses to become "qualified custodians" in an effort to prevent big money from accessing the crypto market. While details of the changes are yet to be revealed, people close to the matter say the SEC is planning to put the proposal to an internal vote on Wednesday.
In January, the SEC reportedly started probing advisers on whether they are meeting guidelines on how cryptocurrencies should be stored in custody. As per Reuters' sources familiar with the matter, the regulator was asking investment advisers about how they access crypto stored at third party providers as they cannot have custody of client funds by law.
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