Blockchain Association and Others Opposed US Regulator New Rule For Crypto Custody
In February, the US Securities Exchange Commission asked that client assets be separated from custodial. They are proposing to change a new custody rule that later drew criticism from people and the Blockchain Association.
However, the Blockchain Association filed a complaint against this action, arguing that the proposed rule could likely put investors' assets at risk or be a problem for some small crypto companies and could cause small companies to lose business or merge their operations with qualified custody.
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Honestly, the SEC's proposed rule looks more like a war against crypto exchanges in America, but I will admit that preventing client assets after the FTX debacle is a wrong move. FTX mismanaged client funds may be what caught US regulations to proposed rules for the new asset segregation rule, but this is not the solution, it really shows that Chairman Gary Gensler is targeting crypto and crypto-related companies.
But in response, SEC Chairman Gary Gensler said that the custodial rule is to ensure that advisers do not abuse or manipulate investors' assets, and that it will be easy if there is a problem to point out the assets that belong to clients and one belongs to the custodial. While the investment companies are also safe from the crypto industry when there is a crisis.
All claims named to protect investors
Since the new rule is not yet finalize, the Blockchain Association and Andreessen Horowitz argued that the rule would have a negative effect, and many other comments led to an opposition against the rule.
According to a letter from senior SBA attorneys who said the change will threaten smaller investment advisers and many more. I also give thought on this rule is what to demand for but when looking it in different angles I don't think the rule will be effective orelse the SEC will review all comments and submissions of opposition to this new rule.
I think they have to come in the right way of imposing rules on crypto exchanges and also viewed their comment on why they don't want such rule will be a way forward in regulating rules in America.
Thanks for your attention