#Coinbase legal chief sends letter to #SEC on RIA rulemaking
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Coinbase’s chief legal officer requests revisions to the SEC’s RIA custody rule to safeguard all asset classes, including cryptocurrencies, criticizing the rule for unfairly targeting crypto.
Coinbase’s legal chief has requested the United States Securities and Exchange Commission (SEC) make several revisions to its proposed regulation on the responsibilities of registered investment advisers (RIAs) for storing client assets with qualified custodians.
Although the SEC acknowledges Coinbase Custody Trust Company as a “qualified custodian,“ Coinbase contends that the updated RIA custody rule unfairly targets crypto and makes improper assumptions about custodial practices based on securities. According to a May 8 letter from Coinbase chief legal officer Paul Grewal, the proposed SEC rulemaking fails to safeguard other asset classes, such as cryptocurrencies.
Coinbase Custody Trust Company is recognized as a qualified custodian for RIA clients. This custodian is responsible for protecting client assets from potential threats such as bankruptcy and cyberattacks.
This letter advocates for expanding the custody obligations proposal to ensure that it remains adaptable to future investments and protects them appropriately.
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