SEC: Crypto-Based Fund and Regulation

The US Securities and Exchange Commission believes that two Wall Street groups that are going to open EFTs and mutual funds, are not ready for that. The matter is regulation. The matter is that SEC believes, that these bitcoin-based companies re not able to comply with the SEC requirements yet.
According to Dalia Blass, the investment management director of SEC, the regulator is happy that companies see potential benefits of bitcoin. Though cryptocurrency now is in the centre of such issues as information, trading transparency and there are many questions regarding regulation. SEC has many questions to the funds-to-be. One of the main questions is how to work in case of forks, which can lead to introducing of several new cryptocurrencies, moreover, those new currencies will be, most likely, different in prices.
SEC believes also liquidity could be a substantial problem, as according to the Investment Company Act 1940, the fund shall give the investors an option to liquidate their funds in the end of each working day.
Moreover, cyptocurrency still offers wide opportunities to fraudster and scam.
Hence, till those issues aren’t solved, the funds do not meet the requirements of the regulator.


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