Market News

SEC Seeks Guidance from Experts on Crypto Custody Ahead of Roundtable

The US Securities and Exchange Commission (SEC) is gearing up for a significant crypto custody roundtable on April 25.

This event will feature expert panelists discussing crucial topics around custody for broker-dealers and investment advisers.

Moderated by Zach Zweihorn from Davis Polk, the roundtable will begin with opening remarks from key SEC officials, including acting Chair Mark Uyeda.

Prominent figures from notable firms, such as Fireblocks and Fidelity, will be among those presenting their insights on current custody practices.

A call from venture capital firm a16z has emerged, urging the SEC to revise outdated custody rules established under the Investment Advisers Act of 1940.

This push highlights industry concerns regarding the inadequacies of the existing regulatory framework for managing digital assets.

Coinciding with the SEC's leadership transition, a more flexible regulatory approach seems possible, heightening industry optimism.

As the SEC continues to examine custody issues, the legal landscape remains dynamic with paused lawsuits against the SEC, indicating a possible shift in enforcement attitudes.

The outcome of this roundtable could redefine the custody standards for crypto assets, ultimately impacting investor protection and innovation within the sector.

Overall, the SEC's evolving efforts reflect a growing awareness of the need for tailored regulatory measures in the rapidly changing crypto landscape.