Jason Gottlieb and Brian Forman Quoted on SEC’s Proposed Changes to Digital Assets Custody Rules
Jason Gottlieb and Brian Forman were quoted in a February 17, 2023 RIA Intel article entitled “SEC Proposal May Slow Crypto Adoption by RIAs.” The article discussed how the SEC’s proposed changes to custody rules to better protect clients of registered investment advisors have created confusion in wealth management about the definition of qualified custodian.
If adopted, the proposal would broaden the custody rule beyond funds and securities to include any assets, including digital currency, that the advisor manages or oversees. It would also require for the first time that investment advisors enter into written agreements with ‘qualified custodians,’ such as banks or broker-dealers. However, the new rule could potentially prevent advisors from trading products that they want to trade and believe are in the best interest for the clients.
Gottlieb and Forman want the SEC to provide more clarification. “If the SEC says ‘all digital assets held at an RIA must have a qualified custodian,’ but then they don’t allow anyone to be a qualified custodian for cryptocurrency, that’s not helpful for advisors or investors.”
Read the RIA Intel article here.
Contacts
- Jason P. Gottlieb Partner & Chair, Digital Assets; Chair, White Collar and Regulatory Enforcement
- jgottlieb@morrisoncohen.com
- Brian R. Forman Partner & Chair, Investment Funds and Advisers
- bforman@morrisoncohen.com
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Our Digital Assets Group represents some of the largest and most significant names in the sector, drawing upon our depth of experience and comprehensive understanding of cryptocurrency, DeFi, DAOs and NFTs.
