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News

US Securities Regulator Looks Into Wall Street’s Crypto Custody

January 17, 2023 - Around 2 mins mins to read

Key Points:

  • Traditional Wall Street investment advisors who might be providing digital asset custody to their clients without the necessary credentials are being investigated by the United States Securities and Exchange Commission (SEC).
  • SEC is focusing a lot of its investigational efforts on determining whether registered investment advisors have complied with the laws governing the custody of client cryptocurrency assets.
  • SEC hasn’t turned a blind eye to traditional investment firms in the digital asset space.
Traditional Wall Street investment advisors who might be providing digital asset custody to their clients without the necessary credentials are being investigated by the United States Securities and Exchange Commission (SEC).
US Securities Regulator Looks Into Wall Streets Crypto Custody

According to a Jan. 26 Reuters article citing “three persons with knowledge of the matter,” the SEC’s investigation has been ongoing for a while but picked up speed following the failure of the cryptocurrency exchange FTX.

According to the sources, the SEC’s investigations have not previously been known because they are confidential.

According to the Reuters story, the SEC is focusing a lot of its investigational efforts on determining whether registered investment advisors have complied with the laws governing the custody of client cryptocurrency assets.

Investment advice businesses are required by law to comply with the custodial precautions outlined in the Investment Advisers Act of 1940 and be “qualified” to provide custody services to customers.

The recent revelation suggests the SEC hasn’t turned a blind eye to traditional investment firms in the digital asset space, Anthony Tu-Sekine said, who leads Seward and Kissel’s Blockchain and Cryptocurrency Group in a note to Reuters:

“This is an obvious compliance issue for investment advisers. If you have custody of client assets that are securities, then you need to custody those with one of these qualified custodians.”

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Annie

Coincu News

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US Securities Regulator

Wall Street's Crypto Custody

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Author

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.
News

US Securities Regulator Looks Into Wall Street’s Crypto Custody

Key Points:

  • Traditional Wall Street investment advisors who might be providing digital asset custody to their clients without the necessary credentials are being investigated by the United States Securities and Exchange Commission (SEC).
  • SEC is focusing a lot of its investigational efforts on determining whether registered investment advisors have complied with the laws governing the custody of client cryptocurrency assets.
  • SEC hasn’t turned a blind eye to traditional investment firms in the digital asset space.
Traditional Wall Street investment advisors who might be providing digital asset custody to their clients without the necessary credentials are being investigated by the United States Securities and Exchange Commission (SEC).
US Securities Regulator Looks Into Wall Streets Crypto Custody

According to a Jan. 26 Reuters article citing “three persons with knowledge of the matter,” the SEC’s investigation has been ongoing for a while but picked up speed following the failure of the cryptocurrency exchange FTX.

According to the sources, the SEC’s investigations have not previously been known because they are confidential.

According to the Reuters story, the SEC is focusing a lot of its investigational efforts on determining whether registered investment advisors have complied with the laws governing the custody of client cryptocurrency assets.

Investment advice businesses are required by law to comply with the custodial precautions outlined in the Investment Advisers Act of 1940 and be “qualified” to provide custody services to customers.

The recent revelation suggests the SEC hasn’t turned a blind eye to traditional investment firms in the digital asset space, Anthony Tu-Sekine said, who leads Seward and Kissel’s Blockchain and Cryptocurrency Group in a note to Reuters:

“This is an obvious compliance issue for investment advisers. If you have custody of client assets that are securities, then you need to custody those with one of these qualified custodians.”

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Annie

Coincu News

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