Investment Advisers And Cryptocurrencies

In reaction to the growth and popularity of cryptocurrencies and digital tokens, the SEC has recently begun to exercise its authority over the digital asset market. The SEC, which is responsible for oversight of the securities markets in the United States, has determined that most cryptocurrencies and digital tokens are by definition "securities" and therefore subject to its jurisdiction under the federal securities laws. Consistent with that view, the SEC has made public statements, issued investor alerts and carried out enforcement actions addressing digital assets within the traditional legal framework for primary offerings and secondary market trading of securities.

Receiving less attention but no less significant are the activities of investment professionals who are advising others on investing in cryptocurrencies and digital tokens. Digital assets are becoming widely viewed as a distinct asset class which can offer investors additional alpha and