The SEC is opening the way for “mutual funds” to invest in cryptocurrencies during a public hearing in May 2024.

Mr. Anek Yuyuen, Deputy Secretary General and Spokesman of the Office of the Securities and Exchange Commission (SEC), revealed that the Capital Market Supervisory Board (SEC) has decided in principle to amend the criteria for mutual funds that can invest in digital assets by preparing to open a session Public hearing in May 2024.

Opening mutual funds to invest in digital assets will be divided into two parts: investment tokens, which the SEC considers to have similar risks to securities, and cryptocurrencies. Which are considered high risk and have high price volatility

Initially, the SEC will set standards for mutual funds to invest directly and indirectly (such as Bitcoin ETFs, etc.) and will also specify which types of funds can buy digital assets and in what proportion. Including other conditions

However, we still focus on two main criteria:

Box type Like funds intended for retail investors you have to consider the risk aspect. If funds with a high or low risk level are able to purchase digital assets, their percentage should be limited. How big is cryptocurrency? There must also be transparent advertising regulations. Be clear about which digital assets are being invested. At the same time, if it is a fund for institutional investors, they may be willing to accept the investment risks. Cryptocurrency Get more than just retail

Investor side We have to look at how much risk each group can take.

In addition, with regard to technology for capital market development, the SEC has approved the principle of using investment tokens to raise funds for companies that are in line with the government's digital economic policy, such as companies related to soft power, for example in the case of creating a song for sale on the market. And issue the song token for investors to purchase. Therefore, when such songs can generate income from different channels. The owner of the song will receive a share and will distribute the income to the token holders.

Therefore, creating investment tokens to raise money for companies that are aligned with the government's economic policy, such as soft power, will help support more diversity in many industries, such as the film and music industry, etc. The SEC will have a hearing during May. 2024.

However, the SEC still aims to develop digital infrastructure. They are also looking into the possibility of issuing the token into bonds and debt securities for distribution to retail investors. It's been expedited now, you should see more clarity soon.

In addition, it is preparing to standardize private bonds that will be linked to databases. API or Blockchain methods can be used to help buyers purchase bonds without having to enter personal information each time. Or in the event of a default (hypothetical), the information will be displayed in real time.

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