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SEC To Vote on Rule That Would Tighten Crypto Custody Requirements

The Securities and Exchange Commission will vote on a rule that would raise requirements for how registered investment advisers custody assets — including crypto.

The agency will vote on proposing a rule that would expand current custody requirements to include any client assets that a registered investment adviser holds, and would also add more protections to those assets, such as surprise examinations. The five-member commission will vote on the proposed rulemaking on Wednesday morning.

If approved the custody rule would be subject to a standard public comment period, after which the SEC could amend it.Registered investment advisers are subject to a custody rule, which requires them to maintain those assets with a qualified custodian, such as a bank or broker-dealer. In prepared remarks provided to press, SEC Chair Gary Gensler said that rule has not been updated since 2009.

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