Digital Assets Remain Top of Mind for SEC Division of Examinations

Private funds that invest in digital assets face unique compliance challenges, especially with regard to trading, valuation and custody. The SEC Division of Examinations recently issued a broad risk alert (Alert) on the activities of advisers, broker-dealers and transfer agents relating to the offer, sale and trading of digital assets that constitute securities. As used in the Alert, “digital asset” refers to “an asset that is issued and/or transferred using distributed ledger or blockchain technology,” including, without limitation, virtual currencies and tokens. This article discusses the key takeaways from the Alert, with added insight from Genna N. Garver, partner at Troutman Pepper. See “Symposium Examines the State of the Cryptocurrency Market (Part One of Two)” (Jun. 25, 2020); and “HFA Program Explores Trends and Challenges in Digital Assets, Including Need for Clearer Regulations” (Feb. 13, 2020).

To read the full article

Continue reading your article with a HFLR subscription.