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    Nov. 20, 2025

NSCP to SEC’s Crypto Task Force: Focus on Clarity, Custody and Coordination

On January 21, 2025, then-acting SEC Chair Mark T. Uyeda announced the launching of the Crypto Task Force. Led by Commissioner Hester M. Peirce, the Task Force’s focus is to help the Commission draw clear regulatory lines, provide realistic paths to registration, craft sensible disclosure frameworks and deploy enforcement resources judiciously. Notably, Peirce encouraged industry stakeholders to engage with the Task Force by providing written input on the issues surrounding digital assets and the form that rules around them should take. In response to that request, the National Society of Compliance Professionals (NSCP) sent a letter (Letter) to the Task Force, focusing on three digital asset issues of critical importance to compliance professionals: (1) a lack of clarity as to how digital assets are classified under the securities laws; (2) solutions for the custody of digital assets; and (3) the need for coordination among the various regulators with overlapping jurisdiction over such assets. The Hedge Fund Law Report spoke to Genna Garver, partner at Troutman Pepper Locke, who spearheaded the NSCP’s drafting of the Letter. This article summarizes the Letter, with insights from Garver on its preparation and three focuses. For more commentary from Garver, see “What Hedge Fund Managers May Expect From the SEC in 2025” (Jan. 16, 2025); and “Dissecting the Fifth Circuit’s Vacatur of the Private Fund Adviser Rules and Its Implications” (Jul. 18, 2024).

Best Practices for Engaging Private Fund Administrators

The role of fund administrators has gotten increased attention in recent years in the aftermath of the Bernie Madoff Ponzi scandal, which highlighted the need for heightened probity and more efficient and sophisticated data analysis with regard to inflows and outflows of cash from private funds; the allocation of fees and expenses; and the reconciliation of accounts both internally and externally. But even now, the role of administrators is not understood nearly as well as it could be in the private funds space and beyond. Moreover, some fund managers lack a keen sense of what to look for and what questions to ask when vetting administrators as potential partners, and they may not grasp how critical automation of recordkeeping processes is to an administrator’s ability to carry out its tasks efficiently, as well as the importance of the full disclosure of that technological ability to the manager. All those themes were discussed in a Manhattan Alternative Investment Network (MAIN) webinar entitled, “Is Your Fund Administrator Meeting All Your Needs?” This article summarizes key takeaways from the webinar, which featured Robert Ansell, director of business development at Opus Fund Services, and moderator Daniel P. McGuire, partner at Citrin Cooperman Advisors LLC. For coverage of a prior MAIN event, see “Common Mistakes to Avoid When Launching a Hedge Fund” (May 8, 2025).

CCO Hiring Process: Typical Timeline and Sample Interview Questions (Part Two of Two)

When fund managers finally decide to either newly fill their CCO role or upgrade their current personnel, the timeline and process can prove somewhat daunting. Finding the elusive “ideal” candidate can feel like searching for a needle in a haystack, both as to how long it takes and the difficulty of sifting through a crowded field of candidates. As part of that process, managers need to use thoughtful, well-reasoned interview questions to discern which candidate has the necessary experience and traits to thrive in the role. This second article in a two-part series examines the timeline for filling the CCO role, key stakeholders involved in the interview process and an array of sample questions that firms can use to vet which candidate is best suited for the role. The first article discussed current drivers and trends in the CCO market; the experience, skills and attributes firms are looking for in candidates; and the typical compensation ranges for CCOs based on a firm’s size and sophistication. See “Skills and Qualities of Effective Compliance Officers” (Jul. 17, 2025).

Navigating DEI In a Charged Political Environment

In the current political environment, “diversity, equity and inclusion” (DEI) have become loaded words. Political changes in 2025 have affected how private employers, universities and institutional investors are approaching DEI, noted Akin partner Ira P. Kustin at a PLI program on demographics, inclusion and performance in the alternative investment industry. Some have determined that it is not important to their business; others continue to see its importance. Kustin and his co-panelists – who approached the issue through the lens of asset managers in general and hedge fund managers in particular – discussed the Trump administration’s anti-DEI efforts; their impact on fund managers and allocators; and how the desire to find and retain the best talent can be consistent with DEI efforts. This article synthesizes their insights. See “Advancing Diversity, Equity and Inclusion in the Alternative Investment Industry” (Jul. 18, 2024).

SEC Sanctions Adviser for Undisclosed Conflicts and Misrepresentations to Investors

Although the SEC has signaled a lighter regulatory touch, it remains steadfast in its pursuit of misconduct that harms investors. On September 9, 2025, the SEC announced a settled civil enforcement proceeding against a private fund adviser and two management firms he controls. The adviser and one firm allegedly breached their fiduciary duties by failing to comply with the funds’ governing documents and disclose conflicts of interest associated with inter-fund loans, other transactions with affiliates and repurchases of investors’ fund interests. All defendants also allegedly made material misrepresentations to investors and prospective investors in the funds they advised. This article details the SEC’s allegations and the settlement terms. See “SEC, CFTC and FINRA Division Heads Discuss Enforcement Outlook” (Apr. 24, 2025).

Jack Murphy Returns to Akin From the CFTC

Akin welcomed Jack Murphy back to the firm as senior counsel in the white collar defense and government investigations practice in New York. Murphy rejoins Akin from the CFTC, where he served as a senior trial attorney and head of the Digital Asset Task Force. See “SEC, CFTC and FINRA Division Heads Discuss Enforcement Outlook” (Apr. 24, 2025); and “CFTC Enforcement Report Reflects Strong Focus on Digital Assets” (Dec. 22, 2022).

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Women to Watch: Contributions, Achievements and Observations of Outstanding Female Professionals

To mark International Women’s Day, women editors and reporters at ION Analytics interviewed outstanding women in the industries and jurisdictions we cover. In this part, Law Report Group editors Jill Abitbol, Robin L. Barton and Megan Zwiebel profile notable women in data privacy, cybersecurity, private funds and anti-corruption law, including Anne-Gabrielle Haie, Jessica Lee, Micaela McMurrough, Laura Perkins, Amanda Raad, Madelyn Calabrese, Ranah Esmaili and Genna Garver. Enjoy reading their inspiring remarks here.