The US Securities and Exchange Commission staff opened to allow investment advisers to use state confidence companies to take care of cryptocurrency assets.
In a rare letter with no action, the SEC investment division Says On Tuesday it did not recommend that the SEC would take the implementation action if counselors used state trust companies as a crypto career.
The law firm Simpson Thach and Bartlett is sent A letter to the division on Tuesday, wishing certainty that registered financial institutions, such as venture capital firms, would not be subject to the implementation of the regulator’s implementation if they Custody Crypto Assets.
This is Second letter with no action From SEC this Sunday, a sign of agency hands-off approach With the implementation of the crypto under the Trump administration, who has pledged to ease the administration of sector regulation to attract US companies and projects.
Temporary steps in greater changes
SEC staff stated in the letter that state confidence companies can be used as carers, provided it has Methods designed to protect cryptoAnd the counselor and fund managers comply with specific criteria, such as performing the appropriate diligence and determining its clients’ best interests.
Division of Investment Management Director Brian Dalya said in a statement shared with Cointelegraph that the letter was a “temporary step in a longer modernization of our precautionary requirements.”
“This relief opens up a larger universe of crypto preservation options, subject to important safeguards.”
The Sec Says It is in its flex agenda regulation that will suggest amendments to the careful policies. Under current regulations, the Investment Company Act and the Investment Advisers Act require that client assets will be held by a list of qualified carers, such as banks.
Peirce, Analyst, Changes in the back
Sec Commissioner Hester Peirce Says The guide removes registered “game games” and regulated funds are forced to play while choosing a creature for cautioning crypto assets, and ultimately “the clients will benefit the advisory and funds of shareholders.”
He added that it covers the client’s crypto assets held by registered counselors or crypto asset investments of regulated funds subject to their their careful provisions, and also tokenized securities.
“This moment also presents us an opportunity to consider whether the precautionary requirements applicable to registered advisors and regulated funds should be improved and modern, such as by policies based on principles.”
Bloomberg ETF Analyst James Seyffart Pinalakppap The decision on an X post on Tuesday, which called it “Book example -study more clarity for the digital asset space. Exactly the kind of thing the industry has requested in recent years.”
Pseudonymous crypto businessman Marty Party also in favor of the SEC letter, and predicted This will result in “more crypto custodians,” which they said would be “great news for crypto adoption.”
Meanwhile, Wyoming Senator Cynthia Lummis Taught out his state make a similar move in 2020condemned by the biden -ra sec at that time.
Crenshaw called a letter “stressful”
The single commissioner of the agency’s Democrat, Caroline Creshaw, Punato The letter, focusing that any changes to the existing regimes should be made by deciding, including public comments and economic analysis.
He added the transfer of the division that “boasts a stormy hole” to existing policies and unfair absence of applicants looking for national charts from the Comptroller’s office office to offer crypto care services.
“In today’s action, state trust companies can miss the whole OCC application process where others participate in enthusiasm,” he said.
“The basic principle that supports our laws and policies about investing advisors and conservation company investment is confident. Deciding who will trust as a guardian is a high stake and important question.”
Magazine: The fear and doubt of lawmakers pushes the suggested crypto regulations with us
