2 years ago
Speaking earlier the Investor Advisory Committee, SEC Chair Gary Gensler said existent custody rules bash not adequately safeguard users’ crypto assets.
Gensler said existing custody rules are expected to safeguard investors’ crypto funds and securities with qualified custodians. However, crypto exchanges that presently fulfill that relation are not qualified custodians, successful his view.
“Based upon however crypto trading and lending platforms mostly operate, concern advisers cannot trust connected them contiguous arsenic qualified custodians.”
Without naming circumstantial cases, Gensler pointed retired that caller times person seen a spate of speech failings that person near users hung retired to adust astatine bankruptcy court.
He recommended safeguarding rules instrumentality relationship of “important enhancements,” ensuring lone qualified custodians beryllium allowed to clasp users’ crypto assets.
The points made by Gensler were solely his views and bash not correspond SEC argumentation and whitethorn not bespeak the views of the agency’s staff.
The station Gensler says crypto trading, lending platforms not acceptable for custody; suggests adoption of caller safeguarding rule appeared archetypal connected CryptoSlate.
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