The US Securities and Exchange Commission (SEC) has removed its proposed definition of "digital asset" from its latest hedge fund rule, reversing its move to formally define the role of cryptocurrencies. The SEC had initially included the definition in its proposal to overhaul mandatory disclosures for hedge funds, but ultimately decided against it. While the agency continues to consider crypto matters, recent policy moves have aimed to bring cryptocurrencies under existing rules. Despite not holding a formal definition for digital assets, the topic remains a constant in speeches by Chair Gary Gensler and other SEC officials. Some suggest that the SEC may have removed the definition to maintain their litigation stance that digital assets are securities subject to SEC laws.
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