SEC to consider changes to rules for crypto custodians

The U.S. Securities and Exchange Commission (SEC) is weighing new recommendations for investment advisers and firms regarding cryptocurrencies.

William Birdthistle, director of the Division of Investment Management, said during a выступления at the IAA Investment Adviser Compliance Conference that he was examining ways to bring order to the crypto industry.

«Regarding investment advisers, I am aware of questions about how providing advice on cryptocurrencies affects compliance with the law, especially the custody-rule aspects,» the official said.

Under regulatory requirements, advisers must custody securities with qualified custodians. Custodians essentially must hold a federal license or state-level approval as a bank, trust, or brokerage. In the United States, such status has been granted to, for example, cryptocurrency companies Anchorage and Paxos.

Birdthistle said his division plans to review public comments on the activities of broker-dealers in digital assets. The regulator published the request in August 2021.

«Growing opportunities to invest in securities directly through digital platforms, such as robo-advisers, online brokerages, mobile apps and portals, also create challenges. I look forward to reviewing the recommendations in light of the comments we have received in this area», added the head of the SEC division.

The regulator excluded amnesty for crypto companies that self-report violations of securities laws.