News Digest:

The Securities and Exchange Commission has unveiled a proposal to mandate hedge funds managing assets over $500m to report their cryptocurrency exposure through a secret filing known as Form PF.

Under the mooted revised reporting requirements for hedge funds, “digital assets” would be added as a new asset class on Form PF, which was designed in the wake of the 2008 financial crisis to help U.S. regulators identify potential financial-stability risks in the private-funds industry.

Takeaway:

Justifying the move, SEC chairman Gary Gensler pointed out that the so-called shadow banking sector, entailing “far less regulation and far less transparency” will soon overtake the commercial banking system.

End Notes

Source: https://www.wsj.com/articles/regulators-weigh-asking-hedge-funds-to-report-crypto-exposure-11660140000