Today the SEC published new proposed rules regarding the need for financial advisers to use qualified custodians to control customer assets. The proposal requires the custody rules to apply to all assets, not just securities and funds. Hence this would cover all crypto-assets, whether or not they are securities. Republican Commissioner Uyeda argued the new proposals make it hard for advisers to deal with crypto assets and be compliant.
“How could an adviser seeking to comply with this rule possibly invest client funds in crypto assets after reading this release?” asked Uyeda.
“This approach to custody appears to mask a policy decision to block access to crypto as an asset class. It deviates from the Commission’s long standing position on the neutrality of the merits of investments.” While Commissioner Hester Peirce is often forthright on these topics – and was the sole vote against moving forward with the proposal – Uyeda supported the proposal despite strong objections.
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