SEC proposes new rules for holding crypto assets on behalf of investors
The SEC, the U.S. securities regulator, has proposed new rules for holding crypto assets on behalf of clients of investment funds and advisory firms.
For years, funds and advisory firms have bought stocks on behalf of their clients and deposited them with a regulated custodian. But the law does not yet specify where crypto assets must be deposited or how they must be held, leaving firms without a clear way to ensure they are complying with the law.
For the first time, the SEC has spelled out who may hold clients’ crypto assets and what requirements they must meet. The approach is similar to the one for stocks: a fund invests on behalf of its clients, while the crypto assets are deposited with a qualified custodian. Funds and advisory firms may hold clients’ crypto assets themselves only if no custodian is willing to accept those assets.
The SEC will seek public comment for 60 days before making a decision.
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The SEC, the U.S. securities regulator, has proposed new rules for holding crypto assets on behalf of clients of investment funds and advisory firms.
For years, funds and advisory firms have bought stocks on behalf of their clients and deposited them with a regulated custodian. But the law does not yet specify where crypto assets must be deposited or how they must be held, leaving firms without a clear way to ensure they are complying with the law.
For the first time, the SEC has spelled out who may hold clients’ crypto assets and what requirements they must meet. The approach is similar to the one for stocks: a fund invests on behalf of its clients, while the crypto assets are deposited with a qualified custodian. Funds and advisory firms may hold clients’ crypto assets themselves only if no custodian is willing to accept those assets.
The SEC will seek public comment for 60 days before making a decision.
$RLC
$RAD
