SEC Chair Mark Uyeda Hints at Possible Changes to Crypto Custody Rules

• The US SEC may discard or revise crypto custody rules from the Biden administration. 
• Former SEC chair Gensler made it mandatory for investment advisors to report their holdings at regular intervals for greater transparency. 

The Trump administration in the US has already brought several changes in terms of crypto regulation and acceptance. To fulfill his promise to make the US a crypto capital, Trump has already taken several initiatives such as a crypto token reserve. The present SEC administration also plans to scrap previous crypto custody rules of the Biden administration. 

As per a Reuters report, the US SEC acting chair Mark Uyeda stated that they are planning to develop changes to existing rules. At an investment conference in San Diego, Uyeda shared his remarks and addressed concerns raised over a broad scope of previous chair Gary Gensler’s proposal. 

A recent rule mandates mutual and exchange-traded funds to report portfolio holdings at regular intervals. These types of crypto custody rules might witness revisions or complete discard by the present SEC administration. Furthermore, Uyeda also opines that the SEC needs to prioritize effective and cost-efficient regulations.

Mark Uyeda to Revise Former SEC Chair Gensler’s Custody Rules

Former SEC chairman Gary Gensler imposed rules to ensure investment advisers do not use, lose, or abuse their client’s assets. Gensler also said that these rules would promote greater transparency. However, considering public comments on these rules, Uyeda seems to be keen on revising them.  

During Gensler’s period, Mark Uyeda questioned,

“How could an adviser seeking to comply with this rule possibly invest client funds in crypto assets after reading this release?”

However, Uyeda supported the proposal even though he disagreed with various provisions. 

As the present US administration is crypto-friendly, the SEC might bring favorable rules to investment advisers. Trump’s presidency even formed a Crypto Task Force led by Hester Pierce to develop clear crypto regulations. 

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