Coinbase and other cryptocurrency custody providers claimed on Feb. 15 that they could operate under the proposed changes to the custodial rules.
Coinbase Supports SEC Efforts
Today, the US SEC voted to propose regulatory changes that could require exchanges to store user assets with qualified custodians. This could also update custodian rules, making it more difficult for incumbent crypto companies to offer custody services.
Coinbase Chief Legal Officer Paul Grewal said on twitter His company is “confident” it will remain a qualified custodian under the proposed rule change. He added that Coinbase supports the U.S. Securities and Exchange Commission’s efforts to provide investor protection and supports the public rulemaking process.
and bloomberg In an interview, Grewal said: However, he did not say what kind of approval this would amount to on the part of regulators.
In another interview with CNBC, Grewal was asked what Coinbase would do if US regulators forced the company to close its custody services. Grewal responded that Coinbase has a “very diverse business” across services and target countries, suggesting the company may shift its focus elsewhere.
Comments from other companies on proposals
Coinbase’s stance on the matter is noteworthy. $90 billion in assets under custody, based on figures from . block data.
Only a few other crypto custody providers have issued statements on the matter. BitGo — the next largest provider with $64 billion in assets under custody — likewise reassured clients that it remains a qualified custodian. Via Twitter.
In a statement to Coindesk today, Anchorage said it was “explicitly” a qualified administrator and should be able to operate under the proposed rules.
Despite clear support from custody providers, the proposed regulatory change would raise the requirements for companies wishing to offer custody. blockchain association It even says the proposed changes are “bad policies” that could “restrict or prohibit” investors from engaging in the cryptocurrency industry.
The proposed changes could affect investment advisors and crypto companies, and the SEC plans to open comments from all parties in the coming months. So no doubt there will be more discussion before any changes are made.