Cryptocurrency market is growing rapidly.. but there is something hidden there. Don't dream of new records

© Reuters. Will the cryptocurrency market suffer more? The SEC is monitoring major Wall Street investors seeking cryptocurrency

Will the price suffer more? Financial market regulators are gearing up for much-needed and improved regulation around the digital asset industry. In that effort, the US Securities and Exchange Commission (SEC) has launched an investigation into registered investment advisers, according to a report.

Is the SEC going after major Wall Street investors? According to a report, these registered investment advisers are under the supervision of the SEC. The watchdog verifies whether customers are complying with regulations regarding their stored digital assets. The move came after the cryptocurrency industry witnessed the failure of SBF on FTX, which led to a horrific market crash.

The report indicated that SEC officials are questioning the preferred process for advisers to gain control of platforms, including FTX. However, advisors typically buy through a third party to hold clients’ digital assets. The latter directly indicates that observers are moving to expand their radar around traditional companies.

The latest move also suggests the SEC is now pursuing Wall Street bigwigs looking for ways to invest. The report also highlights that the regulator’s accounting rules make it difficult for lenders to hold cryptocurrency for their customers. This leaves very limited options for advisors seeking guardianship.

The global digital asset market has recently regained a significant trillion marks. Bitcoin price falling to $16,000. However, BTC is trading at an average price of $23,034 at the time of writing.

A big challenge for guardians? Investment advisors mainly deal with the biggest cryptocurrencies like Bitcoin and. Bitcoin price is expected to face some resistance in the future; But the cryptocurrency market will clarify the rules.

However, the law does not give investment advisers custody of clients’ money or securities. It depends on the asset protection standards. Meanwhile, the Authority does not have a specific list offering licenses to be a market controller.

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