Equity

Circuit

Bull Market

Hedge

<ul>
 <li>The Fifth Circuit Court of Appeals ruled that the SEC overstepped its authority in mandating hedge fund transparency rules.</li>
 <li>The SEC’s rule required hedge funds to provide quarterly performance reports, annual audits, and eliminate preferential treatment.</li>
 <li>The court’s decision could influence the SEC’s regulatory approach towards the cryptocurrency industry and future legislative actions.</li>
</ul>
<p>A US appeals court has overturned a Securities and Exchange Commission (SEC) rule mandating hedge funds and private equity firms to increase fee and expense transparency.</p>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr"><img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f9d1-200d-2696-fe0f.png" alt="🧑‍⚖️" class="wp-smiley" style="height: 1em; max-height: 1em;">The U.S. Court of Appeals for the Fifth Circuit has vacated an SEC rule aimed at tightening regulations on private fund advisers. The court ruled that the SEC exceeded its statutory authority under the Advisers Act and the Dodd-Frank Act. This decision impacts how private funds… <a href="https://t.co/vHNOh6O7HI" rel="noopener noreferrer nofollow">pic.twitter.com/vHNOh6O7HI</a></p>— ๒๒๒ץợ_ợץ๒๒๒ (@bbbyq_qybbb) <a href="https://twitter.com/bbbyq_qybbb/status/1798472835608039697?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">June 5, 2024</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
 </div>
</figure>
<p>A three-judge panel of the Fifth Circuit Court of Appeals rendered this landmark decision on June 5, finding that the SEC had overreached its jurisdiction. Six business groups had challenged the SEC rule, which led to the court’s decision. They contended that the rule would raise compliance costs and completely change the manner in which the industry operated.</p>
<p>The regulation required annual audits, quarterly performance and fee reports, and the removal of exclusive privileges to certain investors. SEC’s argument that the Dodd-Frank Act significantly expanded its power was dismissed by panel Judge Kurt Engelhardt.</p>
<p>Engelhardt stated that the Commission did not have the authority it claimed from the two <a href="https://www.cftc.gov/LawRegulation/DoddFrankAct/index.htm" target="_blank" rel="noopener noreferrer nofollow">Dodd-Frank Act</a> sections that the SEC had cited. The unanimous ruling by the court represents a severe setback to the SEC’s ability to regulate the hedge fund and private equity sectors.</p>
<p>The <a href="https://www.ca5.uscourts.gov/" target="_blank" rel="noopener noreferrer nofollow">Fifth Circuit Court of Appeals’</a> ruling to reverse the SEC’s transparency rule for private equity firms and hedge funds is a significant setback for the SEC’s regulatory power. The SEC may now have to deal with legislative battles that could change the way it regulates businesses, especially those in the crypto industry.</p>
<p>Recently, the <a href="https://cryptonewsland.com/crypto-clarity-or-chaos-house-passes-fit21-but-senate-showdown-looms/" target="_blank" rel="noopener noreferrer nofollow">Financial Innovation and Technology for the 21st Century Act (FIT21),</a> which seeks to give the Commodity Futures Trading Commission (CFTC) regulatory authority over cryptocurrencies, passed the House with bipartisan support. This legislation may have a major impact on the SEC’s role in the cryptocurrency market.</p>
<p>The ruling will have a significant impact on the <a href="https://cryptonewsland.com/ripples-imminent-showdown-with-sec-how-will-it-reshape-cryptos-legal-frontier/" target="_blank" rel="noopener noreferrer nofollow">SEC’s ability to regulate</a>, especially in the dynamic cryptocurrency market, and on the hedge fund industry in particular. The SEC’s role in financial regulation may change significantly as Congress continues to debate and approve laws like FIT21.</p>
<h4 class="wp-block-heading" id="h-read-also">Read Also</h4>
<ul class="wp-block-yoast-seo-related-links">
 <li><a href="https://cryptonewsland.com/crypto-market-transitions-into-bull-market/" rel="noopener noreferrer nofollow">Crypto Market Transitions into Bull Market as Bitcoin’s Potential for New Lows Diminishes</a></li>
 <li><a href="https://cryptonewsland.com/tether-being-shorted-by-hedge-funds-ceo-speaks-up/" rel="noopener noreferrer nofollow">Tether Being Shorted by Hedge Funds, CEO Speaks Up</a></li>
 <li><a href="https://cryptonewsland.com/ripple-and-fubon-bank-pioneer-home-equity-lending-with-cbdcs/" rel="noopener noreferrer nofollow">Ripple and Fubon Bank Pioneer Home Equity Lending with CBDCs</a></li>
 <li><a href="https://cryptonewsland.com/btc-adoption-to-hedge-uns-sustainable-development-goals/" rel="noopener noreferrer nofollow">BTC Adoption to Hedge UN`s Sustainable Development Goals</a></li>
 <li><a href="https://cryptonewsland.com/btcs-growing-ties-with-u-s-equities-and-bonds/" rel="noopener noreferrer nofollow">BTC’s Growing Ties with U.S. Equities and Bonds – An August Overview</a></li>
</ul>
<p>The post <a href="https://cryptonewsland.com/secs-authority-diminished-major-win-for-hedge-funds-and-private-equity-firms/" rel="noopener noreferrer nofollow">SEC’s Authority Diminished: Major Win for Hedge Funds and Private Equity Firms</a> appeared first on <a href="https://cryptonewsland.com" rel="noopener noreferrer nofollow">Crypto News Land</a>.</p>

SEC’s Authority Diminished: Major Win for Hedge Funds and Private Equity Firms

Crypto News Land

Other articles published on Jun 6, 2024

BlockDAG’s Lunar Keynote Ushers in Wave of Investors, Soaring Past $42.3M and Dimming Dogeverse’s...

Pepe Price Forecast: On The Cusp Of 35% Action To $0.00002

June 2024 Crypto Showdown: MoonBag’s Best Crypto Presale in June 2024 Shines Brightest Among Dogw...

AVAX’s defense of $36 – Is a dip next for altcoin’s price?

TRON Price Prediction for June 2024: How high can TRX go?

New law grants US president power to block digital asset access

Join our free newsletter for daily crypto updates!