Will bitcoin price struggle further? SEC launches investigation into investment advisers

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Bitcoin Price To Struggle More? Financial market regulators are gearing up for much-needed improved laws around the digital asset industry. In that lawsuit, the U.S. Securities and Exchange Commission (SEC) has launched an investigation into registered investment advisers, a report says.

Is the SEC attacking the Biggies of Wall Street?

According to a report, registrar investment advisers have landed under SEC scrutiny. The watchdog verifies whether it complies with the rules concerning the digital assets of the customers in custody. The move comes after the crypto industry saw an SBF FTX disaster that led to a horrific stock market crash.

SEC officials are questioning advisers’ preferred process for obtaining custody of platforms, including FTX, the report said. However, consultants generally purchase digital assets from clients through a third party in order to store them. This latest probe is a direct signal that watchdogs are stepping up their efforts to extend their radars around traditional businesses.

The latest decision also suggests that the SEC is now looking to go after Wall Street biggies looking for ways to invest in crypto. The report further pointed out that watchdog accounting rules have made it difficult for lenders to hold crypto for their clients. This leaves very limited options for consultants looking for custodians.

The global market capitalization of digital assets recently regained the crucial $1 trillion mark. Bitcoin price dropped to trade in the $16,000 range. However, BTC is trading at an average price of $23,034, at press time.

Big worries for the goalkeepers?

Investment advisors mainly deal with the biggest cryptos like Bitcoin and Ethereum. Bitcoin price is expected to experience some resistance, but the crypto market will gain clarity on regulation.

However, the law does not give investment advisers custody of client funds or securities. It depends on the criteria involved to protect the assets. Meanwhile, the commission does not have a certain list of licensing offers to become depositories in the market.

Ashish believes in decentralization and has a keen interest in the evolution of Blockchain technology, the cryptocurrency ecosystem, and NFTs. He aims to raise awareness of the growing crypto industry through his writing and analysis. When he’s not writing, he’s playing video games, watching thrillers, or playing sports outdoors. Contact me at [email protected]

The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.

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