Rules are intended to properly segregate customer assets to protect users
US securities And the Securities and Exchange Commission proposed new rules on Wednesday, which could push crypto companies even further as regulators continue to crack down on the space.
The SEC requires registered investment advisors (RIAs), such as asset managers and hedge funds, to store their customers’ money and securities with qualified custodians such as banks, broker-dealers, and trust companies when storing digital assets. Voted 4 to 1 on the suggestion to direct. , mostly leaving crypto companies in the suburbs.
The proposal is intended to properly segregate client assets and protect users’ assets if advisors and custodians file for bankruptcy or become insolvent, the SEC said.
“If there’s anything we should learn from the FTX demise, we should hold our assets until they need to be traded by a qualified, regulated and insured outside custodian. That’s it,” BitGo CEO Mike Belshe told TechCrunch. “This creates checks and balances for validating reserve assets under the exchange’s control.”
