WASHINGTON, D.C.— Benjamin Schiffrin, Director of Securities Policy for Better Markets, issued the following statement after the Securities and Exchange Commission (SEC) proposed rules allowing investment advisers to self-custody crypto assets:
“Investors deserve to know that their securities are properly safeguarded. That is why the SEC has long imposed rigorous rules regarding the custody of client assets. For traditional securities, investment advisers must maintain custody with only so-called qualified custodians, such as banks or broker-dealers. The SEC itself recognizes that this is to guard against the risk that the adviser ‘loses, misuses, or misappropriates client assets.’ Yet the SEC now proposes to…
