SEC Cracks Down on Crypto Custody with New Registration Rule

The US Securities and Exchange Commission (SEC) has completed its agenda on cryptocurrency with the adoption of a new custody rule. This rule will require exchanges and custodians to register with the SEC as a trust company, similar to traditional banks. According to the SEC, this will provide additional protection for investors and ensure that their assets are properly safeguarded.

The new rule is the result of a long-awaited proposal that was first introduced in 2020. It is seen as a major step forward in the regulation of the cryptocurrency industry, which has been criticized in the past for its lack of transparency and oversight.

The rule is not without controversy, however. Some industry observers have expressed concerns that the increased regulatory burden will stifle innovation and drive up costs for exchanges and custodians.