By a 4-1 vote, a panel of the United States Securities and Exchange Commission (SEC) decided to approve a proposal that, if implemented, would make it more difficult for companies that trade cryptocurrencies to act as custodians of digital assets in the future. . This proposal could make it more difficult for companies to act as custodians of digital assets. There were five people on the panel in total.

According to a statement issued by SEC Chairman Gary Gensler on February 15, the proposal, which has not yet been officially approved by the SEC, recommends amendments to the “Custody Rule of 2009” that will apply to custodians. of “all assets”. including cryptocurrencies. This rule will apply to custodians of “all assets,” including cryptocurrencies, according to the statement. The “2009 Custody Rule” would be updated to include these changes.

According to Gensler, at the present time there are a number of cryptocurrency trading platforms that are not actually “qualified custodians” even though they are promoting the provision of custodial services.

According to the Securities and Exchange Commission (SEC), a qualified custodian is typically a bank or savings association chartered by the federal or state government, a trust company, a registered stockbroker, a registered futures commission dealer or a financial institution located outside of the United States. Additionally, a qualified custodian must be able to demonstrate that it meets the SEC’s requirements.

These custodians will have to go through additional hurdles, such as annual audits by public accountants, among other transparency measures, as part of the proposed new rules. In addition, US and offshore companies will be required to ensure that all assets in custody, including cryptocurrency, are properly segregated in order to become a “qualified custodian.” These new rules were proposed by the Financial Stability Oversight Council (FSOC). To achieve “certified custodian” status, companies based in the United States or abroad will also need to ensure the safety of the assets in their care.