Right now, crypto trading and lending platforms routinely offer custody for crypto customers, but they’re not “qualified custodians” under this rule. An appropriate custodian under SEC’s regulations would generally mean a chartered bank or trust company, a broker-dealer registered with the SEC or a futures commission merchant registered with the Commodity Futures Trading Commission (CFTC). While officials said the rule wasn’t specific to crypto, the industry featured heavily in formal remarks previewing it. “Make no mistake: Based upon how crypto platforms generally operate, investment advisers cannot rely on them as qualified custodians,” SEC Chair Gary Gensler said in a statement. “Though some crypto trading and lending platforms may claim to custody investors’ crypto, that does not mean they are qualified custodians.”
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