SEC to Make It Harder for Hedge Funds to Work With Crypto Firms: Bloomberg

The U.S. Securities and Exchange Commission (SEC) is planning to propose rule changes that would make it harder for hedge funds, private equity firms and pension funds to work with crypto firms, Bloomberg reported on Tuesday.

The SEC would make it harder for crypto firms to be “qualified custodians" or companies that hold client assets for money managers, Bloomberg reported, citing people familiar with the matter.

The U.S. regulator has been increasing its scrutiny of crypto and recently went after stablecoin issuer Paxos and its BUSD stablecoin. The crypto industry has been reeling from the collapse of crypto exchange FTX, which has drawn the ire of global regulators.

The SEC was not immediately available for comment when contacted by CoinDesk.

Read more: Paxos ‘Categorically Disagrees’ With SEC That BUSD Is a Security, Says It Will Litigate if Needed