“Rather than properly segregating investors’ crypto, these platforms have commingled those assets with their own crypto or other investors’ crypto,” Gensler said. “When these platforms go bankrupt – something we’ve seen time and again recently – investors’ assets often have become property of the failed company, leaving investors in line at the bankruptcy court.”
Commissioner Hester Peirce opposed Wednesday's proposal, finding fault with several aspects including its one-year implementation period for the largest advisers, which she argued “seems too short to accomplish all of it.” She also criticized potential harm to the crypto sector, saying one of the effects would be “likely shrinking the ranks of qualified crypto custodians,” and that the rule seemed designed to force advisers to back away from industry ties immediately.
In some ways, Gensler’s own crypto rhetoric makes this proposal less dramatic. The SEC chairman has already said most tokens are securities that should be registered. Under the existing rules for investment advisers, securities already need to be in the hands of"qualified custodians." So in Gensler's view, the current standards already affect the vast majority of digital assets.
SECGov jesseahamilton All these actions trike me as Gensler trying to submit random brain farts as an assignment after the due date ?
SECGov jesseahamilton The old man from poltergeist should not be calling the shots.
SECGov jesseahamilton Bull market for unregistered CT advisers