US SEC 3rd Crypto Round table: Check Live Updates
Custody rules protect investors’ money : Caroline Crenshaw
Commissioner Caroline Crenshaw emphasized the necessity of robust, bespoke custody rules for crypto assets. “Crypto presents unique risks that demand equally unique protections,” she said, citing issues such as hacks, protocol failure, and smart contract bugs.
Crenshaw asked if an independent crypto custody regime could be equal to the current SEC rules, which she labeled as the “gold standard” of investor protection. She cautioned, “If we lower the bar, we risk exposing investors to serious harm.”
She also expressed concern about investment advisers keeping crypto assets in their own possession. “Are most advisers operationally able to safely practice self-custody…
