Should Hedge Fund Advisers Deregister?

        In their euphoria over the D.C. Circuit’s recent ruling invalidating the SEC’s adviser registration rule, hedge fund advisers may be tempted to rush to deregister.   My analysis of applicable state law, however, demonstrates that this may be a mistake.  Advisers may be merely trading one set of regulations for another.  Therefore, any decision to deregister should be made carefully and with full consideration of the consequences.