SEC Commissioner Hester Peirce proposed that firms participating in the exemption comply with disclosure, recordkeeping, custody and operational transparency standards, including conditions related to smart contract risks and wallet security protocols

Claim

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Supplemental requirements for participants offering crypto custodial services might include customer disclosures about custody arrangements and risks and a requirement to implement policies and procedures or substantive requirements related to blockchain and wallet security.
Additional conditions might include requirements to provide material and relevant disclosures to users about a platform’s products, services, operations, conflicts of interest, and risks, including smart contract risks;