Digital asset funds offer exposure to risky cryptos under SEC inspection - WSJ

The legal viability of cryptocurrencies included in funds managed by digital currency asset managers like Grayscale Investments is coming under scrutiny by the Securities and Exchange Commission, the Wall Street Journal reports. Grayscale Investments launched a fund two months ago that invests in tokens tied to crypto-trading platforms including Uniswap ((UNI-USD -7.3%)) and Sushiswap ((SUSHI-USD -7.9%)); the SEC is investigating the startup behind Uniswap, the WSJ reported earlier this month. SEC Chairman Gary Gensler said regulators are examining whether crypto trading and lending platforms violate SEC rules, which could determine whether the assets the platforms allow to be exchanged are securities. Grayscale says it warns potential investors of the risks involved. "It's a new space, and they are intrigued by the innovation but also understand that these risks that do come along with this asset class, given how new it is and the regulatory uncertainty that we currently have," Craig Salm,