Criticism Mounts Against SEC's Proposed Crypto Custody Rule Changes

The SEC's proposed rule demanding investment firms safeguard all of their clients' assets, including crypto, with approved custodians has drawn criticism from financial giant JPMorgan, the Small Business Administration, and the crypto sector. The proposed rule said any assets entrusted to investment advisers need to be held with "qualified custodians," which generally means a chartered bank or trust company, a broker-dealer registered with the SEC, or a futures commission merchant registered with the Commodity Futures Trading Commission. The SEC's Chair, Gary Gensler, said the rule would help ensure that advisers don't inappropriately use, lose, or abuse investors' assets.