As a result of the collapse of trading platform FTX, Wall Street’s regulator proposed a rule that could make it more difficult for many asset managers to invest their customers’ money in cryptocurrencies. The Securities and Exchange Commission voted 4-1 on Wednesday to expand the types of assets that investment advisers, such as hedge funds and pension funds, must hold using qualified custodians. The proposal also includes new requirements for qualified custodians and acknowledges that certain characteristics of cryptocurrencies may make them difficult to safeguard in accordance with the rules. The proposal would restrict how asset managers can handle their customers’ crypto assets while imposing no new requirements on individual investors who manage their own portfolios.
