On February 15, Coinbase and other cryptocurrency custody providers argued that they would be able to function under the suggested revisions to custodial standards.
Coinbase supports the work of the SEC
The U.S. today The SEC decided to put out a regulatory amendment that might make exchanges have to utilize licensed custodians to hold user assets. Additionally, this would change custodian rules, potentially making it challenging for current cryptocurrency companies to provide custody services.
Paul Grewal, the chief legal officer of Coinbase, tweeted that his business is “confident” that it will continue to be a qualified custodian under the suggested regulation modification. Coinbase supports the United States, he continued. The Securities and Exchange Commission promotes the open rulemaking process and works to protect investors.
Grewal stated in a Bloomberg interview that “we see SEC officials accept that particularly, Coinbase is functioning in a qualified manner,” but he did not elaborate on the exact nature of the regulator's acknowledgement.
Grewal was questioned about what Coinbase would do if US officials ordered the company to stop offering its custody services in a separate interview with CNBC. Grewal replied that Coinbase has “a very diversified business” in terms of the services and nations it offers, suggesting that the firm might change its direction.
Other businesses offer feedback on the idea
Since Coinbase is perhaps the biggest cryptocurrency custody service, its position on the subject is noteworthy. According to data from BlockData, it has $90 billion in assets under control.
Only a small number of other cryptocurrency custody providers have commented on the situation. Similar assurances were provided to clients through Twitter by BitGo, the second-largest provider with $64 billion in assets under custody. Anchorage also declared that it is “unequivocally” a qualified custodian in a statement to Coindesk today, and that it should be allowed to function under the suggested regulations.
Although custody providers appear to embrace the proposed regulation change, it would increase restrictions for businesses who seek to offer custody. The Blockchain Association has even gone so far as to argue that the shift is “poor policy” and may “restrict or forbid” buyers from participating in the cryptocurrency market. Investment advisors and cryptocurrency companies would be impacted by the proposed change, and the SEC will be accepting opinions from all parties in the coming months. As a result, considerable discussion will undoubtedly take place before any modifications are implemented.
As a reminder, WikiBit is ready to help you search the qualifications and reputation of projects in a bid to protect you from hidden dangers in this risky industry!
iOS: t.ly/UUCj
Android: t.ly/cfYt