Bitcoin Forum

US SEC official highlights key questions on cryptocurrency investment funds The Director of the U.S. Securities and Exchange Commission’s (SEC) Division of Investment Management has underscored the key questions relating to the filings for registered funds that would hold cryptocurrency. While delivering the keynote address at the ICI Securities Law Developments Conference last week, Dalia Blass said that the SEC is thinking about new innovations in asset management..

“[W]e have seen several filings for registered funds that would hold cryptocurrency. As with any new product, there are questions to ask”, Blass said..

To that end, she listed some of the key questions that the agency will discuss when it will work through the filings. These questions revolve around the risks associated with cryptocurrencies, the different features of different blockchain offerings, and their compliance with existing regulatory set up..

When thinking about cryptocurrencies and other blockchain offerings as fund assets, are differences in their features important?. We will be discussing these questions with you as we work through these filings,” Blass added..

When SECs all over the world are asking questions about cryptocurrencies and the media is all over the bitcoin craze, it just simply means that our community is no longer confined to online forums. This will hasten regulations and acceptance by the general public.

Obviously these funds are an attempt to reduce the usability of Bitcoin. If the funds purchase "physical" Bitcoin, then this removes those coins from the market. Without coins to trade, then the velocity of Bitcoin will reduce, and people will have to look for alternatives.