US SEC Strictly Eyes Crypto Advisers To Protect Investors

US SEC Strictly Eyes Crypto Advisers To Protect Investors

Time Stamp: February 8, 2023 4:18 AM
Source Node: 1945478
  • The US securities regulator will oversee cryptocurrency brokers and investment advisors
  • SEC will regularly review the procedures of the firms to ensure compliance
  • FTX’s collapse has placed the SEC’s investigation at the top of the priority list

This year, crypto brokers and investment advisors offering or recommending cryptocurrency will be subject to oversight by the United States securities regulator.

A statement from the Securities and Exchange Commission’s (SEC) Division of Examinations stated its priorities for 2023, indicating that brokers and advisors dealing with cryptocurrencies must be particularly vigilant when offering, selling, or recommending digital assets.

It was said that SEC-registered brokers and advisors would be extensively monitored to determine whether they adhered to their respective standards of care when making recommendations, referring clients, and offering financial advice.

In addition, the SEC will evaluate whether these firms routinely review and update their procedures to ensure that they adhere to compliance, disclosure, and risk management policies.

The most recent announcement comes nearly two weeks after a report indicated the SEC was examining registered investment advisers that may be extending custody of digital assets to their clients without the necessary qualifications.

In other news, Core Dao is to airdrop tokens today. Core DAO’s own blockchain mainnet has already gone live. However, there is negligible activity happening on the network since not many people have access to the CORE token yet.

The team also warned people about scammers and hackers who may extort money from unsuspecting victims. Usually, scammers mint unofficial tokens with a similar name to a popular coin or token. Afterward, they promote the said token across various social media communities through bots or other accomplices.

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José is a crypto enthusiast who trades crypto night and day. He loves to share his trading stories and experiences in all his published articles. José likes to hang out and travel to meet new friends. Enjoys sushi, vodka, and tequila.

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