The U.S. Securities and Trade Fee (SEC) just lately proposed overhauling the Custody Rule beneath the Advisers Act to boost the safety of buyer property managed by registered funding advisers. These enhancements, that are proposed to be embodied in new rule 223-1 beneath the Advisers Act (Proposed Safeguarding Rule), might improve the price burden on crypto custodians and funding advisers – and hurt their purchasers – prompting the necessity to exempt funding advisers from sure elements of the Proposed Safeguarding Rule. We define among the impacts of the Proposed Safeguarding Rule in a latest shopper alert, linked beneath. Our shopper alert additionally proposes an exemption from the Proposed Safeguarding Rule that provides funding advisers the flexibleness to custody shopper property and not using a certified custodian till a extra strong custody market (notably with regard to DeFi) develops, whereas additionally safeguarding in opposition to the abuses that the Proposed Safeguarding Rule seeks to stop.
New SEC Proposed Safeguarding Rule: Inadvertent Crypto Casualties
