US SEC and CFTC Require Hedge Funds To Disclose Their Bitcoin and Crypto Holdings

Regulators may want hedge funds to report crypto exposure.

According to the Wall Street Journal, regulators may require hedge funds to disclose their bitcoin and cryptocurrency holdings.

According to a story published by the Wall Street Journal (WSJ), a joint proposal that is scheduled to be announced on Wednesday by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) would mandate hedge funds with more than $500 million in net assets to reveal their exposure to cryptocurrencies, including portfolio holdings and borrowing arrangements, via a private file known as Form PF.

Gary Gensler, the chairman of the Securities and Exchange Commission, said in a statement that collecting information of this kind will assist the Commission and financial-stability authorities in better observing how major hedge funds interact with the massive cryptocurrency sector.

“Gathering such information would help the Commissions and [financial-stability regulators] better to observe how large hedge funds interconnect with the broader financial services industry.”

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