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SEC sets new rules on the storage of digital assets

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On February 15, the United States Securities and Exchange Commission (SEC) will propose a rule that will effectively require registered investment advisers to …

SEC sets new rules on the storage of digital assets

On February 15, the United States Securities and Exchange Commission (SEC) will propose a rule that will effectively require registered investment advisers to store digital assets outside the cryptocurrency industry. The rules proposed by the US SEC on Wednesday will expand the existing provisions of the agency, that is, investment advisers need to hand over clients’ funds and securities to “qualified custodians” for safekeeping. If the new version is approved, it will increase the protection requirements for any assets (including cryptocurrency) entrusted by the investment adviser.

US SEC proposal may prohibit investment advisers from custody of assets in encryption companies

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The United States Securities and Exchange Commission (SEC) is proposing a new rule that will change the way digital assets are stored by registered investment advisers. Starting February 15, investment advisers will be required to store digital assets outside the cryptocurrency industry, effectively expanding the current provisions of the agency.

This proposal means that investment advisers will have to provide “qualified custodians” to protect clients’ assets and funds, including cryptocurrency. This new version of the rule aims to increase the protection of any entrusted assets.

The increase in the use of digital assets has created a potential vulnerability for investors, and the SEC is taking measures to enhance the security of investors’ assets. By requiring qualified custodians to safeguard digital assets, the SEC is recognizing the importance of protecting investors in the cryptocurrency industry.

Investment advisers are required to register with the SEC and are responsible for providing investment advice and managing portfolios for clients. With cryptocurrency’s exponential growth in popularity, investment advisers must ensure the safety and protection of their clients’ assets. This includes the use of digital assets, which requires a different form of protection from traditional assets.

The new rule provides greater clarity for investment advisers, outlining the responsibilities of the custodian and investment adviser when it comes to digital assets. The SEC recognizes that digital assets require a different level of protection and aims to provide greater protection for investors.

In conclusion, the SEC’s new rule proposal demonstrates the agency’s commitment to protecting investors in the cryptocurrency industry. The increased use of digital assets requires a different form of protection, and by requiring qualified custodians to safeguard assets outside of the cryptocurrency industry, the SEC is enhancing the security of investors’ assets.

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