Crypto sector, be warned: 'How could an adviser seeking to comply with this rule possibly invest client funds in crypto?' one SECGov commissioner asked of the new custody proposal. Meanwhile, crypto firms say they'll be fine. jesseahamilton reports
In the good-news category for the digital assets sector: The state-chartered trusts that many crypto businesses use for custody, such as Coinbase’s Custody Trust Co. and BitGo, may still be able to qualify in that role.
Similarly, crypto bank Anchorage Digital was quick to assure crypto investors of its unique role in the industry as the holder of a federal charter from the Office of the Comptroller of the Currency . “Because crypto assets trade on platforms that are not qualified custodians, an adviser that trades crypto assets on a platform would violate the proposed rule,” Uyeda said. “How could an adviser seeking to comply with this rule possibly invest client funds in crypto assets after reading this release?”
A CoinDesk analysis of how registered investment advisers arrange custody for crypto assets revealed the top choices for traditional financial firms include Coinbase and Anchorage Digital, while crypto-native investment advisers rely on a much wider range of firms inside the industry, including BitGo.
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