Jason Gottlieb Quoted on SEC Vote to Expand Custody Rules to Crypto
Jason Gottlieb was quoted in a February 16, 2023 Cointelegraph France article entitled “SEC Tightens Rules for Custody of Cryptocurrencies.” The article discussed a recent vote by the SEC to require investment advisers to maintain custody accounts for crypto similar to those held for other client assets, such as stocks, bonds and mutual funds. The proposal also requires financial institutions overseeing crypto assets to obtain federal and state registrations to do so.
SEC Commissioner Hester Peirce, the only commissioner to vote against the new rule, had many reservations and the new requirements, including concern that SEC statements equating crypto assets to securities are misleading and seem to be part of a broader strategy for complete jurisdiction over crypto.
Jason stated that small investment advisers may have difficulty complying with the changes and may back away from advising their clients with respect to crypto. He said, "My concern is that they don't create real opportunities for qualified custodians to hold cryptocurrencies, and therefore people may not be able to find a qualified custodian and [will be] unable to comply with the custody rule.”
Read the Cointelegraph France article here.
Contacts
- Jason P. Gottlieb Partner & Chair, Digital Assets; Chair, White Collar and Regulatory Enforcement
- jgottlieb@morrisoncohen.com
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