Briefly,
- This is part two of a series of four SEC roundtables designed to tackle key issues in the cryptocurrency industry.
- Participants will include senior SEC representatives, legal scholars and top executives of crypto firms.
- The industry has expressed concern that the existing SEC regulations do not reflect adequately operational realities in digital asset markets.
The U.S. Securities and Exchange Commission convenes its second Crypto policy roundtable This Friday we’ll be discussing crypto assets, regulatory gaps and custody rules.
It is part of an event. The four-part Series Launched by SEC Crypto Task Force, to discuss and gather feedback on digital asset regulations.
The opening remarks of the SEC will be delivered by several SEC officials, including Paul S. Atkins (new Chairman). Sworn in The crypto industry has been promised regulatory clarity earlier in the week.
The roundtable will feature two panels: one on "Custody Through Broker-Dealers and Beyond" and the second on "Investment Adviser and Investment Company Custody."
How crypto assets are held has become a hot topic in U.S. Financial Regulation. Investment advisers have to store client money and digital assets at a qualified custodian. This is usually a bank, broker or dealer.
Few firms have the technology to handle crypto-assets, as they often use different methods than traditional custodians and require 24/7 trading capability.
SEC 2023 proposed rules aimed at updating these regulations, but have been criticised for lack of practical solutions.
Participants confirmed for the event include leading crypto-finance firms, such as Fireblocks and Anchorage Digital Bank. Also, Fidelity Digital Assets and BitGo will be represented. Discussions will be led by legal experts and academics.
Many of these individuals have expressed their opinions on how crypto assets are currently handled in the U.S.
Neel maitra is a Dechert LLP partner. Previously called custody "the single greatest question facing crypto market participants," citing the dual demands from investors for both access and secure storage.
Justin Browder, Simpson Thacher’s other panelist. criticized Last year, the SEC forced advisers to make a choice between regulatory compliance and client needs.
The custodian noted that there are only a few people who can provide cryptoasset solutions.
The session is a follow-up to a roundtable discussion on cryptocurrency trading that was held on April 11, 2019. The next two sessions are on May 12, tokenization, and June 6, decentralized financial finance.
Sebastian Sinclair edited the book
