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SEC to Make It Harder for Hedge Funds to Work With Crypto Firms: Bloomberg
The rule change would make it harder for crypto firms to become "qualified custodians," according to the report.
Updated Feb 14, 2023, 7:22 p.m. Published Feb 14, 2023, 1:30 p.m.
The U.S. Securities and Exchange Commission (SEC) is planning to propose rule changes that would make it harder for hedge funds, private equity firms and pension funds to work with crypto firms, Bloomberg reported on Tuesday.
The SEC would make it harder for crypto firms to be “qualified custodians" or companies that hold client assets for money managers, Bloomberg reported, citing people familiar with the matter.
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The U.S. regulator has been increasing its scrutiny of crypto and recently went after stablecoin issuer Paxos and its BUSD stablecoin. The crypto industry has been reeling from the collapse of crypto exchange FTX, which has drawn the ire of global regulators.
The SEC was not immediately available for comment when contacted by CoinDesk.
Read more: Paxos ‘Categorically Disagrees’ With SEC That BUSD Is a Security, Says It Will Litigate if Needed
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- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
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The influential Democrat is the most vocal critic of the crypto legislation, and she continues to throw rhetorical sand in the gears of the negotiation.
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- U.S. Senator Elizabeth Warren, the ranking Democrat on the Senate Banking Committee, is calling for a probe into DeFi platforms, especially on their relationship with the business interests of President Donald Trump.
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