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Scott Melker discusses the Securities and Exchange Commission moving forward with crypto custody regulations similar to a proposal that failed to pass in 2023.
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SEC resurrecting US scripted custody, crypto custody rule the previous administration failed to land.
Gary Gensler didn’t get this done. I’m shocked.
In 2023, the regulator tried to narrowly restrict the places investment advisors could park client’s crypto assets, but the new approach is still shrouded in secrecy.
So what happened here? The SEC has actually sent its proposed custody rule overhaul to the White House Office of Information and Regulatory Affairs, but we have not been able to read it.
if you were around for the Gensler era, you know that the last administration did not exactly make life easy for crypto enthusiasts in the United States, particularly for crypto companies.
There were very strict custody rules. Gensler in trying to push these rules forward, wanted it only to be qualified custodians to make sure that you could only push crypto into the biggest trusted institutions on Wall Street and the crypto incumbents would be completely left out of that conversation.
Well, he did not get this done, but they had this rule SAB 121 that actually effectively did the opposite.
It forced every custodian to not only have if you had <a href="https://cryptoz7.com/bitcoin-6-4-billion-options-expire-tomorrow/” title=”Bitcoin: $6.4 Billion Options Expire Tomorrow”>Bitcoin on the balance sheet, it was considered a liability, so they needed to raise cash on the other side to match those liabilities, and none of those custodians could hold it anyways. It was a complete mess.
That was reversed by this SEC.
Well, now, yes, this is shrouded in secrecy secrecy, but Atkins is calling this actually deregulatory. That was the term that the regulator used, said that this is deregulatory.
Um, its stated objective is to clarify crypto custody while removing outdated regulatory burdens. Sounds like a lot more companies are going to be able to custody these assets.
And we all know obviously that the trust charters have been extended to a lot of crypto companies anyways.
