SEC Moves Forward with Crypto Asset Custody Rules Guidance

The Securities and Exchange Commission (SEC) has made progress in developing guidance for crypto asset custody rules, according to James Seyffart. This move has sparked questions about the necessity of the CLARITY Act.

Seyffart notes that this development is part of a larger context of regulatory actions affecting related areas, including the IRS's notice impacting tax structuring techniques such as in-kind redemptions. He also previously explained that certain derivatives can carry counterparty risk due to their structure.