The rule aims to keep customer assets properly segregated to protect users
US Securities and Exchange Commission proposed a new rule on Wednesday that may further corner crypto firms as regulators continue to crack down on the space.
The SEC voted 4-1 in favor of a proposal that would direct registered investment advisers (RIAs), such as wealth managers or hedge funds, to hold clients’ money and securities with qualified custodians. such as a bank, stockbroker or trust company when storing digital assets. , mainly leaving crypto companies on the outskirts.
The proposal is intended to keep client assets properly segregated so that if an adviser or custodian goes bankrupt or becomes insolvent, it could protect user assets, the SEC said.
“If there’s anything we need to learn from the FTX collapse, it’s that assets should be stored until they are required for trading by qualified, regulated, and insured third-party custodians,” Mike Belshe, BitGo’s CEO, told TechCrunch. “This creates a check and balance to verify the reserve assets under the control of any exchange.”
