According to Bloomberg, the Securities and Exchange Commission (SEC) plans to propose rule changes that would make it difficult for cryptocurrency firms to act as “qualified custodians” for their clients. To protect their clients’ funds, hedge funds, pension funds, and other institutional investors in digital assets are required to use qualified custodial services. The proposed rule change would make it more difficult for cryptocurrency firms to become “qualified custodians,” which would allow them to hold digital assets on behalf of clients. According to Bloomberg, the new rule, which includes no-warning audits of custodial relationships, may require institutions to find other companies to safeguard their clients’ digital assets.
