US Securities and Change Fee (SEC) and the Commodity Futures Buying and selling Fee (CFTC) have collectively proposed an modification to Type PF.
The proposal seeks to differentiate between “digital property” and “money and money equivalents” for giant hedge funds to make sure extra correct reporting.
In accordance with the proposal, a brand new sub-asset class must be created for digital property reporting–that means these companies must reveal their publicity to the crypto trade individually.
The proposal outlined digital property as property issued via blockchain expertise, together with however not restricted to cash, tokens, and digital currencies.
Type PF is designed to assist regulators determine systemic dangers to financial stability.
The authorities famous that investments in digital property have change into extra frequent, and there’s a rising want to collect extra info on the publicity of those funds to crypto. The latest market crash additional highlighted the danger of market contagion.
In the meantime, the regulators are additionally looking for feedback from the general public about whether or not they need to use the time period “crypto asset” or “digital asset.”
The regulators wrote:
“We view these phrases as synonymous. We’re proposing the time period and definition to be per the SEC’s latest assertion on digital property, and we imagine that such time period and definition would offer a constant understanding of the kind of property we intend to deal with.”
The deadline for remark submission is Oct. 11.
US regulators are more and more working in the direction of the regulation of the crypto area. The SEC Chairman Gary Gensler has repeatedly urged crypto companies to speak to the company whereas the CFTC can also be rising its trade oversight.