Bloomberg: The SEC's proposed new rules may make it harder for hedge funds and others to collaborate with cryptocurrency companies

According to ChainCatcher news, citing informed sources from Bloomberg, under a proposal draft by the U.S. Securities and Exchange Commission (SEC), hedge funds, private equity firms, and pension funds may find it more difficult to collaborate with many cryptocurrency companies.

The rule changes that the SEC plans to propose on Wednesday will effectively make it harder for cryptocurrency companies to become "qualified custodians." The draft requires hedge funds, venture capital, and pension funds to hold their clients' assets through qualified custodians. If passed, this rule could mean that institutional funds already involved in cryptocurrency may have to transfer their clients' holdings elsewhere. They may also face sudden audits or other consequences related to their custodial relationships.

Most of the five members of the SEC review panel must approve the proposal for it to be publicly solicited for public comment. After considering feedback, the SEC will need to vote again to finalize the rules and make them effective. (source link)