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The SEC's Custody Rule Would Be a Net Positive for Crypto

The short timeline between the FTX exchange's collapse in November 2022 and the U.S. Securities and Exchange Commission’s (SEC) vote in February 2023 to expand the types of digital assets included in the so-called Custody Rule shows that regulators are mo

The short timeline between the FTX exchange's collapse in November 2022 and the U.S. Securities and Exchange Commission’s (SEC) vote in February 2023 to expand the types of digital assets included in the so-called Custody Rule shows that regulators are moving quickly to take actions they perceive will safeguard the crypto industry. As much as regulators have been harped on by crypto insiders for not understanding the space and setting precedents that hamper innovation, requiring exchanges to separate custody from trading will be enormously positive for the future of crypto. Modern traditional finance segregates business lines such as trading, financing and custody and uses a robust system of checks and balances.

by wjb news
© 2023 WJB All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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