[Blockchain Association calls on the US SEC to modify the regula

The Blockchain Association, a crypto industry group, filed a comment letter on May 8 in response to the U.S. Securities and Exchange Commission (SEC) regulation. The proposed rule’s requirements for qualified custodians, among other things, would prevent native custodians of digital assets from continuing to provide custodial services, which would reduce rather than increase protections for advisory clients, the letter said. In February, the U.S. SEC proposed changes to its regulatory rules. The changes would expand the scope of the rules beyond client funds or securities and would cover client assets under investment advisors. The Blockchain Association believes that, for now, the rule needs to be amended to "adequately account for" the characteristics of digital assets, and it recommends that the SEC allow advisors to use trading platforms that are affiliated with qualified custodians and subject to an appropriate degree of regulatory control.