Cryptocurrency 2023: The new priorities of the SEC!

The chairman of the Securities and Exchange Commission (SEC) has once again attacked the crypto sector. This time around, Gary Gensler has remained focused on crypto exchanges. He suggested that these should not be viewed as ” qualified custodians“. Find out what backs up the SEC Chairman’s statements.

According to Gary Gensler, crypto exchanges are not safe

Gary Gensler spoke about crypto exchanges during an Investor Advisory Committee meeting on Thursday. He indicated that these platforms are not reliable enough to be considered as qualified custodians. The Chairman of the SEC referred to a recent rule that concerns investment advisers. Said rule obliges the latter to entrust the storage of their assets, including cryptos, only to qualified custodians. Gensler therefore suggests that investment advisers have no interest in turning to exchanges for this service.

The SEC Chairman indicated that the rule in question significantly improves the existing protection rules. He explained : “Based on how crypto exchanges and lending platforms typically operate, investment advisers cannot rely on them today as qualified custodians.“.

Gary Gensler shoots crypto exchanges

Just because a crypto trading platform claims to be a custodian doesn’tequality as it is», added Gary Gensler. The SEC Chairman then referred to the recent collapses in the crypto sector. He lamented that customers were unable to recover their assets held by failed exchanges.

What does the rule for investment advisers say?

Gensler said the proposal for investment advisers replicates a 2010 Congressional provision that would allow “extend the custody rule to cover all of an investor’s assets, not just their funds or securities“.

Congress has granted us new powers to expand custody rule in response to the financial crisis and the Bernie Madoff frauds. Expanded custody rule would help ensure advisers do not misuse, abuse or lose investors’ assetsGensler pointed out.

The SEC Chairman previously attacked the new industry by claiming that cryptos are all securities. The recent exchange statement is just one more attack on the booming industry.

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