SEC Emphasizes Importance of Understanding Crypto and Care Obligations for Advisers and Brokers

The US Securities and Exchange Commission (SEC) has issued a bulletin advising brokers and investment advisers to use heightened scrutiny when recommending crypto products to clients. The bulletin outlines the advisers' duties to customers and specifically mentions crypto, continuing the SEC's recent focus on the sector. The SEC guidance states that certain products are more complex and have additional risk features, making it more difficult for firms and their financial professionals to develop an understanding. Therefore, advisers must ensure that clients understand the products and whether crypto offerings make sense for their specific financial situations.