The United States Securities and Exchange Commission (SEC) is set to host a high-profile roundtable on crypto custody, bringing together industry leaders, regulators, and legal experts to discuss the future of digital asset safekeeping.
The event, scheduled for April 25, addresses growing concerns about how cryptocurrencies are stored and protected, especially as institutional interest in digital assets continues to rise.
The roundtable will focus on the challenges and risks associated with crypto custody, such as safeguarding private keys, ensuring compliance with existing regulations, and managing the threat of cyberattacks. Participants are expected to include representatives from major exchanges, custody service providers, and legal professionals with expertise in blockchain technology.
A key topic on the agenda is the application of the SEC’s “custody rule” to digital assets. Initially designed for traditional securities, this rule requires investment advisers to hold client assets with qualified custodians. However, the unique nature of cryptocurrencies has sparked debate over how these regulations should be interpreted and enforced in the digital age.
Industry stakeholders have expressed concerns that unclear or overly restrictive rules could stifle innovation and limit access to secure custody solutions. Some participants are also expected to advocate for more explicit guidance and tailored regulations reflecting the technological realities of blockchain-based assets.
The SEC will host another roundtable discussion on crypto custody on May 8, following increased scrutiny of the sector and several enforcement actions against firms for inadequate customer fund protection. This discussion is part of a series addressing various crypto topics, with the first roundtable on crypto trading held on April 11 and future sessions on tokenization and decentralized finance scheduled for May 12 and June 6, respectively. Regulatory clarity on custody is anticipated to impact compliance requirements significantly and competitive dynamics among service providers. It could facilitate broader institutional adoption and enhanced investor protections in the crypto space.
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