Investment Management Counsel Ed Baer Discusses Cryptocurrency Clarification by the SEC in Compliance Reporter

A June 19 article in Compliance Reporter titled “Crypto fund obstacles linger after SEC security status clarification” discusses the statement made by SEC Division of Corporation Finance Director William Hinman that certain cryptocurrencies will not be treated as securities. The piece highlights that custody issues remain a primary obstacle and includes remarks from investment management counsel Ed Baer. “A lot of firms are currently trying to determine how to custody these assets, and what we’re hearing is that the SEC staff is trying to figure that out as well,” Mr. Baer states in the article. “We understand that as long as firms make a good faith effort to secure crypto assets, the SEC is not looking to make an example of anybody just because they’re self-custodying those assets.”