- Coinbase factors to flawed SEC guidelines that require holding buyer belongings with certified custodians (QCs).
- Coinbase CLO Paul Grewal identified that the proposal singles out crypto.
- Coinbase talked about just a few solutions within the QC proposal remark letter.
Coinbase lately filed a remark letter on the Certified Custodian (QC) proposal with the USA Securities and Alternate Fee. The remark follows the committee’s February 15 proposal, which focuses on updating the custody rule for funding advisers. Coinbase Chief Authorized Officer Paul Grewal additionally lately posted a tweet to focus on the identical matter.
Grewal pointed to the current SEC proposal, which recommended revisions to a rule requiring registered funding advisers (RIAs) to carry consumer belongings with certified custodians (QCs). Grewal talked about that all the remark letter on the Certified Goalkeeper (QC) proposal is flawed and recommended methods to enhance it.
The Coinbase CLO additionally touched on the opposite risk in case the SEC proposal is handed, stating that Coinbase is assured that the Coinbase Custody Belief Firm will stay a QC and already agrees with the spirit of the proposal.
Like different current SEC actions, this proposal unnecessarily targets crypto and makes inappropriate assumptions about securities markets-based custodial practices.
Grewal summarized some highlights of Coinbase’s SEC proposal, the primary of which targeted on defining state belief firms and different state-regulated monetary establishments as QCs. Second, Grewal identified that the SEC proposal might prohibit RIAs from buying and selling on non-QC crypto exchanges. This, he mentioned, wouldn’t profit the RIAs or their purchasers.
Moreover, Coinbase’s proposal consists of solutions on the right way to keep away from disrupting and make enterprise realities work between custodians and their prospects. Grewal additionally confirmed his gratitude for the prospect to weigh in.
