Cryptocurrency exchanges are not necessarily “eligible custodians”: SEC Chairman Gensler | coindesk JAPAN | Coindesk Japan

SEC (U.S. Securities and Exchange Commission) Chairman Gary Gensler has dismissed the idea that cryptocurrency exchanges could become secure eligible custodians for investment advisors.

At the Investor Advisory Committee (IAC) meeting on March 2, Gensler recently proposed to instruct investment advisors to ask qualified custodians to hold assets, including crypto assets. It said the new rules would provide “significant enhancements” to existing protection rules. The chair also said that cryptocurrency exchanges should not be considered safe under these guidelines.

“Based on the way cryptocurrency trading and lending platforms generally operate, investment advisors cannot currently rely on them as eligible custodians. Just because you claim to be Anne doesn’t mean it is.”

Gensler pointed to recent bankruptcies in the cryptocurrency industry, where customer assets held on those platforms became part of bankruptcy assets rather than being returned directly to customers. pointed out.

“This proposal addresses the expansion of custody rules congressional established in 2010 to cover all investor assets, not just funds and securities. fraud case, it granted the SEC new powers to expand its custody rules, which would prevent investment advisers from improperly using, misusing, or losing investor assets. It will help us to avoid that,” Gensler said.

｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
｜Image: Shutterstock
｜Original: SEC Chair Gensler Says Crypto Exchanges May Not Be ‘Qualified Custodians’–Gary Gensler