{"id":558765,"date":"2023-03-03T01:15:00","date_gmt":"2023-03-02T22:15:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/sec-chair-implies-crypto-exchanges-may-be-qualified-custodians-as-new-rule-is-drafted\/"},"modified":"2023-03-03T01:15:00","modified_gmt":"2023-03-02T22:15:00","slug":"sec-chair-implies-crypto-exchanges-may-be-qualified-custodians-as-new-rule-is-drafted","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/sec-chair-implies-crypto-exchanges-may-be-qualified-custodians-as-new-rule-is-drafted\/","title":{"rendered":"# SEC chair implies crypto exchanges may be \u2018qualified custodians\u2019 as new rule is drafted"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2fda00aa4df\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2fda00aa4df\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/sec-chair-implies-crypto-exchanges-may-be-qualified-custodians-as-new-rule-is-drafted\/#%E2%80%9D_SEC_chair_implies_crypto_exchanges_may_be_%E2%80%98qualified_custodians_as_new_rule_is_drafted_%E2%80%9C\" >&#8221; SEC chair implies crypto exchanges may be \u2018qualified custodians\u2019 as new rule is drafted &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_SEC_chair_implies_crypto_exchanges_may_be_%E2%80%98qualified_custodians_as_new_rule_is_drafted_%E2%80%9C\"><\/span>&#8221; SEC chair implies crypto exchanges may be \u2018qualified custodians\u2019 as new rule is drafted &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDMvZGY2OWJmMWEtMTE3Mi00YTdiLWJlNmItMTZiN2FmYjA0NGUxLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-48054ca8>United States Securities and Exchange Commission (SEC) chair Gary Gensler spoke at a meeting of the commission\u2019s Investor Advisory Committee on March 2 on the topic of asset custody. The committee has a proposed rule for investment advisers on safeguarding investor assets. It was the second statement Gensler has made on the proposed rule. The first <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.sec.gov\/news\/statement\/gensler-statement-custody-021523\">was<\/a> in mid-February when the rule was first proposed.<\/p>\n<p>The current custody rule, dating to 2009, covers \u201ca significant amount of crypto assets\u201d and was designed to reduce the risk of advisers embarking on Ponzi schemes. The new rule expands safeguards to all asset classes, including crypto assets that are not funds or securities, and would enhance protections provided by qualified custodians, in light of new authorities granted by Congress in 2010, Gensler <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.sec.gov\/news\/speech\/gensler-remarks-iac-030223#_ftnref5\">said<\/a>.<\/p>\n<p>The proposed rule would also require written agreements between advisers and custodians, add requirements for foreign institutions serving as custodians and explicitly extend the safeguard rules to discretionary trading.<\/p>\n<p><strong><em>Related: Galaxy acquires institutional crypto custody firm for $44M<\/em><\/strong><\/p>\n<p>Investment advisers, he continued, cannot rely on crypto platforms to perform custodial functions. He added:<\/p>\n<blockquote><p>\u201cJust because a crypto trading platform claims to be a qualified custodian doesn\u2019t mean that it is. When these platforms fail [\u2026] investors\u2019 assets often have become property of the failed company, leaving investors in line at the bankruptcy court.\u201d<\/p><\/blockquote>\n<p>To be a \u201cqualified\u201d custodian under the new rule, a firm would need to ensure that all assets are properly segregated, submit to annual audits from public accountants and undertake other transparency measures. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\"><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/BREAKING?src=hash&amp;ref_src=twsrc%5Etfw\">#BREAKING<\/a>: US SEC Chair Gary Gensler says crypto exchanges are not qualified custodians for investors assets.<\/p>\n<p>\u26a0\ufe0f Says they can&#8217;t be relied upon &amp; must be highly scrutinized.<\/p>\n<p>Calls for Congress to grant change to custody rule. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/tZ8zNSGkDS\">pic.twitter.com\/tZ8zNSGkDS<\/a><\/p>\n<p>\u2014 The Roundtable Show (@RoundtableSpace) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/RoundtableSpace\/status\/1631396071456002048?ref_src=twsrc%5Etfw\">March 2, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>SEC commissioner Hester Peirce opposed the rule. She <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.sec.gov\/news\/statement\/peirce-statement-custody-021523\">argued<\/a> in a statement that the new rule would \u201cencourage investment advisers to back away im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>tely from advising their clients with respect to crypto.\u201d <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/sec-chair-implies-crypto-exchanges-may-be-qualified-custodians-as-new-rule-is-drafted\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; SEC chair implies crypto exchanges may be \u2018qualified custodians\u2019 as new rule is drafted &#8220; United States Securities and Exchange Commission (SEC) chair Gary Gensler spoke at a meeting of the commission\u2019s Investor Advisory Committee on March 2 on the topic of asset custody. The committee has a proposed rule for investment advisers on&#8230;<\/p>\n","protected":false},"author":1,"featured_media":558766,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2023-03\/df69bf1a-1172-4a7b-be6b-16b7afb044e1.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74898,73711,70934],"class_list":["post-558765","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-sec","tag-investments","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/558765","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=558765"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/558765\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/558766"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=558765"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=558765"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=558765"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}