Gensler said crypto intermediaries, like centralized exchanges and DeFi, facilitating these securities transactions would have to register with the SEC.
Gary Gensler said that he was looking forward to giving the Commodity Futures Trading Commission greater authority over the crypto market "as long as it doesn't take away power from the SEC."
The authorities said investments in digital assets have become more common and there is a growing need to gather information on funds' crypto exposure.
The inquiries are part of the latest push from Congress to bring tighter regulation to the crypto industry in the U.S., as the country still struggles to determine which of its many federal agencies should be tasked with overseeing it.
The form would give the regulators insight into the level of exposure hedge funds have to digital assets. It would also allow them to gauge the effects of a crash on the overall economy.
Bloom Protocol chose to settle with the SEC without admitting or denying any of the commission's findings.
SEC Chairman Gary Gensler urged crypto exchanges to operate according to securities law, as they can't be treated differently because of their technology.
The SEC has doubled its investigation of the crypto exchange since it increased the number of listed tokens on its platform.
The SEC has been accused of using enforcement actions to bring all digital assets into its jurisdiction.
SEC's Director Gurbir Grewal admitted that the commission routinely operated outside of its jurisdiction.
Sherman said the SEC should bring enforcement actions against major exchanges that facilitated Ripple (XRP) trading.
Gensler said several crypto companies have been non-compliant with offering unregistered securities to investors.