FX.co ★ SEC plans to regulate cryptocurrency funds

The US Securities and Exchange Commission (SEC) can draw attention to funds with cryptocurrency assets.

According to Division of Investment Management director Dalia Blass, the agency is going to solve some of the issues posed by firms that are holding and investing wholly digitized assets.

“As with any new product, there are questions to ask," Blass said.

Some of questions include how to differentiate different types of assets and whether sufficient information is being provided to prospective investors regarding the related risks.

The move comes amid the SEC’s growing activity around blockchain, including its policing of initial coin offerings (ICOs). Earlier, the agency charged ICO DRC World and REcoin with violating anti-fraud laws. Then, the SEC's new cyber unit filed fraud charges against ICO PlexCoin.