- Coinbase calls consideration to flawed SEC guidelines requiring shopper belongings to be held in Certified Custodians (QC).
- Coinbase CLO Paul Grewal identified that the providing singles out cryptocurrency.
- Coinbase talked about a number of proposals within the QC proposal remark letter.
Coinbase not too long ago filed a remark letter on the Certified Custodian (QC) proposal with the US Securities and Trade Fee. The remark is a response to the Fee’s February 15. a proposal that focuses on updating the Funding Adviser Custody Rule. Coinbase’s Basic Counsel, Paul Grewal, additionally not too long ago posted a tweet highlighting the identical theme.
Grewal highlighted a current SEC proposal that proposed revising the rule requiring registered funding advisors (RIAs) to carry shopper belongings in certified custodians (QCs). Grewal talked about that the certified custodian (QC) proposal remark letter as a complete is flawed and prompt methods to enhance it.
The Coinbase CLO additionally talked about one other risk if the SEC proposal is accepted, saying that Coinbase is assured that Coinbase Custody Belief Firm will stay in QC and already agrees to the spirit of the proposal.
As with different current SEC actions, this proposal unnecessarily singles out cryptocurrencies and makes inappropriate assumptions about custody practices based mostly on securities markets.
Grewal summarized a few of the highlights from Coinbase’s submitting with the SEC, with the primary specializing in state trusts and different state-regulated monetary establishments as QCs. Second, Grewal emphasised that the SEC proposal might prohibit RIAs from buying and selling on non-QC crypto exchanges. In accordance with him, this is able to not profit RIAs or their purchasers.
As well as, Coinbase’s proposal consists of proposals to keep away from disrupting the industrial actuality and operations of depositors and their clients. Grewal additionally confirmed his appreciation for the chance to weigh in.
