Tyler Winklevoss, the founder of the most talked about cryptocurrency exchange Gemini, claims to have received the approval of the US SEC.
Did the SEC shine a bright light on the cryptocurrency company?
The U.S. Securities and Exchange Commission (SEC) on Wednesday proposed sweeping changes to federal regulations. These changes will expand the retention rules to include assets such as cryptocurrency. It will also require companies to register or protect these client assets to hold. The vote came after the SEC voted for sweeping changes to federal regulations. The vote was 1 to 4 in favor of the proposal.
This latest action by the US financial watchdog poses a new risk to the custody policy of cryptocurrency exchanges. That’s because other federal regulators are working aggressively to restrict custodians, such as banks, from protecting client crypto assets. However, according to Tyler Winklevoss, founder of the Gemini crypto exchange, the SEC has recognized the Gemini Trust as a qualified guardian for cryptocurrencies. Gemini Trust Company LLC is a New York trust firm that has been recognized as both a fiduciary and a competent guardian under the New York Banking Act since 2015. According to Tyler, that will remain the case no matter what new rule the SEC decides to adopt and enact.
What does it mean for Gemini?
Gemini Trust claims to use technology specifically related to digital assets as crypto custody raises a number of issues not found in traditional asset management. “That’s why we developed a best-in-class approach to detention, all under the direct supervision and scrutiny of NYDFS,” Tyler says when talking about Gemini’s surveillance services.
Traditional examples of firms that can function as qualified custodians include banking institutions, trust companies, and securities brokers. Nevertheless, cryptocoin.comAs you’ve followed on , businesses such as the Coinbase crypto exchange have also started offering services in the past few years. This is because of the complexities involved in preventing assets like Bitcoin from being stolen or hacked.
In addition, Tyler states that Gemini Trust has obtained SOC 1 Type II and SOC 2 Type II certifications for its storage product. It also highlights that the capital is subject to BSA/AML and cybersecurity regulations. Also, according to reports, Gemini Trust Company is under regular scrutiny, similar to that of a bank. Taken as a whole, these compliance requirements serve as independent verification that the operations and security processes used by Gemini Trust Company meet the strictest standards.
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