Investors and regulators globally are actively reviewing and examining digital asset advisers’ investment practices.
Domestically, the U.S. Securities and Exchange Commission (“SEC”) and the U.S. Commodity Futures Trading Commission (“CFTC”) are studying the risks associated with investing in digital assets as well as the advisers that employ such strategies. SEC Chairman Jay Clayton and CFTC Chairman Christopher Giancarlo testified before the Committee on Banking, Housing, and Urban Affairs on February 6, 2018 regarding the oversight of virtual currencies. In addition, on March 14, the House Financial Services Subcommittee on Capital Markets, Securities, and Investment held a hearing to examine the growth of virtual currencies. Most advisers know by now that cryptocurrency, initial coin offerings (ICOs), secondary market trading, and blockchain are part of the 2018 National Exam Program Examination Priorities
Given recent SEC enforcement subpoenas, SEC examination request letters, staff letters to industry groups, and speeches given by the SEC and CFTC, what were seen as general focus areas as outlined by the regulators have turned into an intensified focus on the digital asset space. Digital asset advisers that register as an investment adviser with the SEC or become an NFA member during a period of heightened scrutiny and uncertainty will likely see an increased chance of regulatory engagement.
How ACA Can Help
ACA Compliance Group (“ACA”) has invested time and resources into developing expertise regarding the compliance complexities associated with managing a digital asset investment strategy. Our team has been monitoring the regulatory implications of virtual currencies, and how this emerging asset class may warrant a fresh look at an adviser’s compliance policies and procedures.
ACA's compliance solutions for cryptocurrency advisers can help ensure your firm has put a compliance program in place that mitigates as much regulatory risk as possible, given our experience with peer firms investing in this asset class. Our team has and will continue to assist investment advisers that manage cryptocurrency strategies with developing compliance programs designed to mitigate the unique compliance risks associated with digital assets and existing regulatory requirements.
As a leading provider of risk management and technology solutions focused on regulatory compliance, financial crime, cybersecurity, and performance, and with hundreds of successful SEC, NFA, and FINRA registrations over our 16 years in business, ACA can help your firm stay out of the regulatory crosshairs.
- Webcast on April 10, 2018: A Brave New World – Primers on Big Data and Cryptocurrency Risks
- Regulatory Developments in the Digital Asset Space
- SEC Highlights Risks Firms Should Assess When Managing Digital Assets
- The SEC’s New Position on Virtual Currency: What Investment Advisers Need to Know
For More Information
Webcast on April 10
Join us on April 10, 2018 for a complimentary webcast that will feature an in-depth discussion on this topic.