Key Highlights
- QCP Capital met with the SEC Crypto Task Force to discuss U.S. regulations before entering the market.
- The company plans to open a U.S. office, register as a broker-dealer, and distribute crypto-linked structured notes and yield-bearing debt securities.
- QCP wants guidance on regulatory treatment, marketing, and disclosure rules for its products targeting accredited investors.
QCP Capital Pte. Ltd., a Singapore-based digital asset firm, met with the U.S. Securities and Exchange Commission (SEC) Crypto Task Force on Tuesday to discuss regulatory requirements before finalizing its plans to enter the United States.
According to the memorandum, the meeting included QCP executives and lawyers from Winston & Strawn LLP and McIntyre & Lemon, PLLC. Both parties reportedly discussed QCP’s plan to distribute structured notes and yield-linked debt securities to U.S. investors. These securities are types of investments, such as Bitcoin, but are designed similarly to traditional investment products.
QCP eyes expansion in the U.S.
In the initial letter where it requested the meeting, QCP Capital explained that it plans to establish a U.S. office and register as a broker-dealer with the SEC and the Financial Industry Regulatory Authority (FINRA).
This means the firm will be legally allowed to buy and sell securities on behalf of investors. With this, QCP aims to distribute its products in a regulated manner to the U.S investors.
In addition, the company said it has developed structured notes and yield-linked debt securities, which are financial instruments where the returns depend on specific formulas. Examples include Bitcoin-linked yield notes, growth-sharing notes, and U.S. dollar or stablecoin-denominated fixed or floating rate notes.
The letter said some of these products will be issued by non-U.S. entities. At the same time, QCP’s affiliated companies will manage the risk of these products through hedging or derivative transactions.
“QCP seeks to better understand the task force view regarding appropriate marketing and disclosure practices to its accredited investor clients for securities that reference digital assets and provide yield-linked returns,” the firm said in the letter.
Previously obtained licences for trading
Meanwhile, QCP currently runs licensed businesses in Singapore and Abu Dhabi, where it provides services such as derivatives trading, spot trading, and structured products for institutional and accredited clients. In addition, the company holds a Major Payment Institution License in Singapore and Category 3A Financial Services Permissions in Abu Dhabi.
By engaging early with the SEC, QCP aims to understand U.S. rules clearly and make sure it follows them before offering its products to American investors.
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