SEC to Vote on Rules Tightening Crypto Custody Requirements

According to The Block, the U.S. Securities and Exchange Commission will vote on rules to tighten custody requirements for cryptocurrencies, which would expand current custody requirements to include disclosure of any client assets held by investment advisors and would add more protection, such as surprise inspections. In addition, the rule requires placing client assets in a qualified custodian such as a bank or proprietary broker, segregating an investor's assets, and entering into a written agreement with a qualified custodian to ensure certain protections for clients.