April 21 (Cointime) - The U.S. Securities and Exchange Commission (SEC) has issued a staff bulletin advising brokers and investment advisers should apply “heightened scrutiny” to whether a risky or complex product is in the retail investor’s best interest.

The bulletin, released on Thursday, outlines the advisers' responsibilities to customers and explicitly mentions crypto, reflecting the agency's recent attention to the sector. The SEC had previously overlooked digital assets in its rules and guidance until last year.

The SEC guidance highlights that "certain products are more complex or have additional risk features, which may make it more difficult for firms and their financial professionals to develop an understanding." The guidance cites "crypto asset securities" as an example. Therefore, when brokers or advisers discuss crypto with clients, they must ensure that their customers comprehend the products and that crypto offerings are appropriate for their specific financial circumstances. This bulletin is a staff's interpretation of existing regulations and not a new rule.