The U.S. Securities and Exchange Commission (SEC) has proposed a rule change mandating Bitcoin (BTC) and crypto investment advisors to hold client assets only in qualified custodians.
The SEC voted on February 15. 4 to 1 vote Under the approved rule, investment advisors can manage client assets, including Bitcoin and cryptocurrencies. in custodians will make a change that will make it harder to keep. Operating in the cryptocurrency industry actors, In general terms, the proposal that has passed the approval stage positive on the characteristics of qualified custodians specified in the rules. details are very important stressed that.
Not Every Institution Providing Crypto Custody Service Is Qualified
Experts in the current market crypto trading and lending for customers of platforms in general provide custody services however, the qualified depository institutions of these actors that they are not expressed. Businesses that the SEC qualifies as qualified custodians generally to the SEC registered trust and banks or To the U.S. Commodities and Futures Commission (CFTC) registered trading platforms was included in the information provided.
Gensler: We See the Importance of Regulation in Bankruptcy Scenarios
SEC Chairman Gensler said that in the current order in the cryptocurrency industry, investment advisors are willing to host client assets. that you can’t trust unregistered businesses underlined. Citing past cases, Gensler argued that custodians’ client assets and company assets definite somehow did not separate in bankruptcy scenario to the suffering of customers drew attention. Chairman Gensler says important users have their presence in the industry. to keep safe stating that the requirements within the scope of this purpose being held tight stated.
The only commissioner to vote against the vote. Hester Peirceeven for consultants with the largest implementation time of the rule. pretty short claimed it was. All actors to act in this context in about 1 year predictive the rule’s qualified cryptocurrency custodians in the market. will reduce and essentially the industry intimidating He claimed it was a policy.
Cryptocurrency Industry Actors: Details Will Determine The Purpose Of The Policy
Cryptocurrency industry actors are in general terms of the rule. industry developer looks like a policy but your details He stated that it is very important in the course of the policy.
Coinbase official Paul Grewalthe custodian of Coinbase Coinbase Custody Trust Co.’s stating that it is a qualified custodian and that it will continue to be a qualified custodian after this rule, your request expressed.
White Collar and Regulatory Enforcement Head of group Jason Gottlieb On the other hand, in general, the regulation of a custodian in terms of the sector good step However, the nature of depository institutions to be clearly stated Said it was pretty important. Gottlieb made the following statements on the subject:
It is obvious that a crypto-qualified custodian will be needed, but at this point, if what a qualified custodian looks like is not clearly stated, a qualified institution will not be able to be found in the market and a dead end will be entered.
Although the experts have received approval for the rule proposal for now, it is not fully understood. put into effect for LONG that there is a way, and that in this process a large can change reminded.
Bloomberg recently reported that the SEC’s crypto firms custody service He stated that he would present a bill that would make it difficult for them to submit.