Private Funds Would Have To Disclose Crypto Under SEC, CFTC Proposal

Regulators are considering requiring private funds with at least $500 million to disclose crypto holdings, leveraged positions, among other things


SEC Chair Gary Gensler | Blockworks exclusive art by axel rangel


key takeaways

  • Regulators are keen to know more about how private funds operate
  • SEC Commissioner Hester Peirce opposes the amendment, saying it is unnecessarily probative

In an effort to better monitor what US regulators perceive as systemic risks, the SEC is moving to get more insight into the dealings of private funds open to accredited investors. 

The SEC Wednesday proposed an amendment to Form PF, the confidential form via which registered investment advisers are required to disclose specific information about their security holdings. 

The Commodity and Futures Trading Commission (CFTC), meanwhile, is considering proposing the same amendments, which would require funds with at least $500 million in assets under management to disclose exposure to cryptoassets. The updates also would mandate large funds to report investment concentration, as well as leverage and related trading financing.

The motion would not, however, make the additional reporting public record. Form PF is not published publicly.

The proposed rules “are designed to enhance the Financial Stability Oversight Council’s (FSOC) ability to assess systemic risk as well as to bolster the SEC’s regulatory oversight of private fund advisers and its investor protection efforts in light of the growth of the private fund industry,” the SEC said in a statement.

Form PF, rolled out in 2011, previously required firms overseeing $1.5 billion or more to report aggregate holdings, geographic distribution of their investments, lending information and monthly portfolio turnover. Asset managers with $500 million or more have to disclose specific exposures, related liquidity and associated risk. 

“In the decade since the SEC and CFTC jointly adopted Form PF, regulators have gained vital insight with respect to private funds,” SEC Chair Gary Gensler said in the statement. “Since then, though, the private fund industry has grown in gross asset value by nearly 150% and evolved in terms of its business practices, complexity, and investment strategies.”

SEC Commissioner Hester Peirce said the proposed amendments are not what she had in mind, claiming the new rules “would expand Form PF by adding questions of the nice to know, rather than need to know variety,” according to a statement released after the proposal announcement. 

The amendment proposal was published on the SEC’s website Wednesday, where the public has 60 days to weigh in.

Don’t miss the next big story – join our free daily newsletter.


Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report - cover graphics (1).jpg


In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.


BUZZ holds shares of Coinbase, Robinhood and MicroStrategy


Opinion: Even though I didn’t pay for my “Diamond Hands” burger with BTC, don’t let that fool you into thinking that crypto’s development is futile


The results mark “a major positive inflection point,” one analyst says, as the exchange carries net income momentum into a crypto rally


While the slate of 10 US spot bitcoin funds have tallied $4.6 billion of net inflows thus far, half of the field is lagging the leaders


Trading volumes totalled $154 billion in Q4, including $125 billion in institutional volume


DeFi on Bitcoin is all the rage right now and Stacks is positioned to benefit