Tyler Winklevoss, the co-founder of Gemini, a cryptocurrency exchange, in a tweet, claims that his cryptocurrency custody service is recognized by the United States Securities and Exchange Commission (SEC).
Has the SEC highlighted the crypto firm?
On Wednesday, the SEC suggested significant changes to federal law. With these, the retention requirements will cover assets such as cryptocurrencies.
Companies will also need to register and safeguard the assets of these customers. The vote came after the SEC approved significant changes to federal regulations. The proposition was supported by a vote of 1-4 overall.
This most recent move by the US banking authority creates a new risk for the custody practices of crypto exchanges. This is due to active efforts by various federal regulators to limit the ability of custodians, such as banks, to safeguard their clients’ crypto assets.
Nonetheless, the SEC has recognized the Gemini Trust as a competent custodian of cryptocurrencies, according to Tyler Winklevoss, the creator of the Gemini cryptocurrency exchange. Since 2015, New York Banking Law recognizes Gemini Trust Company LLC, a New York trust company, as competent guardian and trustee.
Any new regulation the SEC decides to pass and put into effect won’t change that, Tyler says.
What does this mean for Geminis?
According to the Gemini Trust, crypto custody creates challenges absent from traditional asset management, which promises to use technology tailored to digital assets.
Banking organizations, trust corporations, and securities brokers are typical examples of businesses capable of serving as qualified custodians. However, companies like Coinbase have started offering services in recent years. This is due to the challenges of protecting against theft and hacking of digital assets like Bitcoin.
In addition, Tyler said the Gemini Trust’s storage device is SOC 1 Type II and SOC 2 Type II certified and stressed that cybersecurity and BSA/AML requirements apply to the capital.
According to recent reports, Gemini Trust Company is subject to routine inspections, just like a bank. These compliance specifications, taken together, confirm that Gemini Trust Company’s operations and security procedures adhere to the highest standards.
