The “self-custody” discussed in this SEC matter is not about handing customer assets to a person who holds the private keys.
On October 1, the U.S. Securities and Exchange Commission proposed crypto asset custody rules aimed at registered investment advisers and regulated funds. The self-custody conditions listed in the official summary include: first, determining that there are no approved custodians available, and conducting a quarterly review; crypto asset transactions must be authorized jointly by at least two people; and each client’s assets are stored in on-chain addresses that can hold only that client’s assets.
My concern is whether accountability can be checked: who is able to move the assets, how customer assets are isolated from one another, and how control measures can be independently verified. Adding an additional custody option does not mean these responsibilities are reduced by a layer.
This is still a proposal. The conditions above are only partial requirements; they cannot be taken as evidence that rules are already in effect or that institutions have already bought in.
Source: the SEC’s October 1 announcement and accompanying fact sheet.
#CryptoAssetCustody
On October 1, the U.S. Securities and Exchange Commission proposed crypto asset custody rules aimed at registered investment advisers and regulated funds. The self-custody conditions listed in the official summary include: first, determining that there are no approved custodians available, and conducting a quarterly review; crypto asset transactions must be authorized jointly by at least two people; and each client’s assets are stored in on-chain addresses that can hold only that client’s assets.
My concern is whether accountability can be checked: who is able to move the assets, how customer assets are isolated from one another, and how control measures can be independently verified. Adding an additional custody option does not mean these responsibilities are reduced by a layer.
This is still a proposal. The conditions above are only partial requirements; they cannot be taken as evidence that rules are already in effect or that institutions have already bought in.
Source: the SEC’s October 1 announcement and accompanying fact sheet.
#CryptoAssetCustody
