ChainCatcher news: According to Cointelegraph, a U.S. appeals court recently overturned a regulation of the U.S. Securities and Exchange Commission (SEC) that required hedge funds and private equity firms to increase transparency in fees and expenses. The court believed that this move exceeded the scope of Congressional authorization. The case is a blow to the regulator's claimed congressional authorization for the industry. In recent years, outspoken critics of the regulator in the cryptocurrency industry have also made similar criticisms.
On June 5, the Fifth Circuit Court of Appeals ruled against the SEC, stating that it "exceeded its statutory authority." The 656-page rule requires funds to publish quarterly reports, conduct annual audits, and prohibit special treatment for some investors. Six industry groups questioned that the rule would increase compliance costs and change the industry's operating model. ConsenSys senior attorney Bill Hughes said that the SEC's performance in the past three years has been out of step. In the field of cryptocurrency, the SEC believes that many cryptocurrencies are securities within its regulatory scope, but cryptocurrency companies counter that the SEC has no authority to regulate unless it obtains explicit approval from Congress.
