SEC Custody Rule Could Boost Bitcoin Access for Wealth Managers
A proposed rule by the U.S. Securities and Exchange Commission (SEC) on digital asset custody could open new avenues for investment advisers to hold bitcoin directly, potentially broadening client access to the cryptocurrency. Coinbase, a key player in providing custody infrastructure for bitcoin exchange-traded funds (ETFs), views this regulatory shift as an opportunity to expand its services in the wealth management market.
Coinbase Chief Business Officer Shan Aggarwal noted that changes to the SEC’s custody rules could enhance access routes to bitcoin for financial advisers and wealth managers. The company already supports the investment adviser community and provides custody services for most bitcoin ETFs. The SEC’s proposed amendments aim to clarify how investment advisers and regulated funds hold digital assets, creating a pathway for direct holdings if a qualified custodian cannot be used.
Coinbase believes the regulatory change could widen the channels through which money flows into bitcoin, not just through individual purchases but also via financial advisers and wealth managers. The company highlighted rising demand from institutional investors, citing requirements from major financial institutions like BlackRock and JPMorgan for bitcoin infrastructure. Coinbase Vice President Ryan VanGrack emphasized that clearer regulatory frameworks would facilitate institutional fund flows into bitcoin.
Beyond bitcoin, Coinbase is expanding its financial infrastructure. The company recently received approval from the U.S. Commodity Futures Trading Commission (CFTC) related to its in-house clearinghouse and is exploring tokenization as a technology to reshape financial market infrastructure. Stablecoins are another key focus, with Coinbase identifying a $1 trillion opportunity in the stablecoin market and collaborating with Citi to build stablecoin payment infrastructure for companies.