The proposed rule would expand the current custody rule to include any client assets that an adviser has custody over and would also add more protections to those assets such as surprise examinations
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SEC votes to advance rule tightening crypto custody requirements
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Custody rule for investment advisers changes, proposed under the Biden administration with Gary Gensler leading the SEC, would target the crypto industry by expanding its application to all assets under an adviser’s control, thereby requiring all crypto assets to be held with qualified custodians such as banks or broker-dealers and segregate own assets from customers
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