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SEC Leans on Crypto Firms to Report Assets Held for Customers

March 31, 2022, 4:05 PM

The U.S. Securities and Exchange Commission is pressing firms to account for crypto assets they’re holding on behalf of customers on their balance sheets.

A growing number of crypto trading platforms are safeguarding digital assets for their users and maintaining the cryptographic keys necessary to access the tokens, the regulator said in staff guidance Thursday. But platforms aren’t disclosing those activities -- which can increase the chances of financial loss in the event that assets are stolen or misused -- to investors in the same way, leaving some without a full understanding of the risks, an SEC official said on ...