US regulators have sent a request to allow them to jointly amend the PF form. They want to prescribe rules for private hedge funds that deal in cryptocurrencies.
What is Form PF
Form PF is a confidential documentation that all hedge funds are required to file with the SEC. There they report on their risks regarding the assets they work with.
Form PF became mandatory after the 2008 financial crisis. Much of this crisis was caused by the opaque activities of private funds that held derivative assets (especially sub-prime mortgages).
There are no digital assets in the current form of PF. Now the SEC and CFTC want to add them to the reporting and introduce the term “digital asset”.
The topics in the request for comment include:
Whether hedge funds should state the name or type of their digital asset;
whether there should be separate standards for fiat redeemable stablcoins and for CBCDs;
whether capital representing tokens should be treated as a separate class.
Regulators have until September 11 to make their adjustments. It looks like we are in for an interesting month for the crypto industry. After all, the legendary Ethereum “merger” is also scheduled for mid-September.