The SEC, the American Securities and Exchange Commission, published a recommendation for investment advisors in its new bulletin recently. Officials emphasized that brokers and investment advisors should have in-depth knowledge of the products in order to offer risky investment instruments to customers in the most appropriate way.
The bulletin, which summarizes the responsibilities of investment professionals to customers, opened a separate bracket on cryptocurrencies on risky products. The following statements were included in the document:
"Some investment products are more complex than others and involve additional risks. Crypto assets occupy an important place among such financial assets."
For this reason, the SEC requested advisors to explain in detail how suitable the crypto money investment tools they recommend are for clients. It is emphasized in the bulletin that this situation does not include a new regulation.
Who Should Store Crypto Assets?
The Securities and Exchange Commission has drafted a bill to have crypto funds owned by registered investment advisors controlled by a "qualified guarantor." SEC Chairman Gensler firmly stated that exchanges cannot be considered qualified.