Business News Report
May 12, 2023

US House Financial Committee Takes a Stand Against SEC Custody Proposal

SEC Custody Proposal

Six subcommittee chairmen and the chair of the United States House of Representatives Financial Services Committee have written to SEC Secretary Vanessa Countryman expressing their concerns about the agency’s proposed advisory clients custody rule. Crypto industry figures, including House of Representatives Financial Services Committee Chair Robert Wilson, are also opposed.

The Financial Services Committee wrote that the SEC was exceeding its powers in its rule dealing with registered investment advisers (RIA) — which raises requirements for qualified custodians of client funds.

Their letter states that the proposed regulation would “prohibit” assets outside the agency’s jurisdiction, such as “art, cash, commodities, and nontraditional assets,” and “incur custody rules on entities that already are subject to the custody rules of another regulator.”

The proposed rule would have an enormous impact on digital asset market participants, as entrepreneurs and companies within the ecosystem are currently struggling to find banks that want to custody their assets.

The proposed rule’s restriction of qualified custodians to federally chartered entities would create difficulties for them and reduce competition, according to the letter. In addition, the proposed rule would interact with Staff Accounting Bulletin 121 to disadvantage the banking industry further.

  • The SEC takes cryptocurrency seriously. A press release published May 3 entitled “SEC Nearly Doubles Size of Enforcement’s Crypto Assets and Cyber Unit” details this.

Read more related articles:

Tags:

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

More articles
Nik Asti
Nik Asti

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

Hot Stories
Join Our Newsletter.
Latest News

NFTs & Mining: A Digital Synergy

The rise in usage of the non-fungible tokens has changed the way we see and engage with ...

Know More

AI in Crypto

Explore the ever-evolving realm of artificial intelligence within the cryptocurrency sphere. Discover the transformative impact of AI ...

Know More
Join Our Innovative Tech Community
Read More
Read more
USDC Issuer Circle Collaborates with Overdare to Build In-Game Wallets for ‘Roblox-style’ Metaverse
Business News Report
USDC Issuer Circle Collaborates with Overdare to Build In-Game Wallets for ‘Roblox-style’ Metaverse
February 26, 2024
MicroStrategy’s X Account Hacked, Investors Lose $440,000 in Ethereum Phishing Scam
Markets News Report
MicroStrategy’s X Account Hacked, Investors Lose $440,000 in Ethereum Phishing Scam
February 26, 2024
Magic Square Acquires TruePNL, Gears Up for Staking and Launchpad Release
Business News Report
Magic Square Acquires TruePNL, Gears Up for Staking and Launchpad Release
February 23, 2024
Kinetex Network Partners with Succinct to Develop BTCX, a Bitcoin ZK Light Client for DeFi Evolution
News Report Technology
Kinetex Network Partners with Succinct to Develop BTCX, a Bitcoin ZK Light Client for DeFi Evolution
February 23, 2024
What You
Need to Know

Subscribe To Our Newsletter.
Daily search marketing tidbits for savvy pros.