The SEC proposed heightened requirements for businesses that safeguard assets for fund managers, a move that could further squeeze crypto platforms as the industry comes under pressure from regulators:
- Wall Street’s main regulator is set to propose heightened requirements for businesses that safeguard assets for fund managers, a move that could further squeeze crypto platforms such as Coinbase Global Inc. as the industry comes under pressure from regulators.
- The Securities and Exchange Commission is scheduled to vote Wednesday on a proposal that would expand the types of assets that investment advisers, such as hedge funds and pension funds, are required to hold using qualified custodians. It would also direct advisers to reach written agreements requiring, for example, that custodians receive annual evaluations from public accountants and provide account statements.
- SEC Chair Gary Gensler has said that crypto firms’ custody practices might not clear the legal hurdles necessary to keep their customers’ assets safe in the event of a bankruptcy. In January, a judge ruled that cryptocurrencies deposited in Celsius Network LLC’s interest-bearing accounts belonged to the bankrupt firm rather than to its customers.
