Oct. 17, 2023
The following are things to consider in regards to crypto users related to the Subject SEC Federal Register new rule: The proposed rule would require crypto exchanges and custodians to disclose more information about how they handle and protect customer assets. This could increase compliance costs for some crypto companies. The rule would impose stricter requirements around auditing, reconciliation, and accounting for customer assets. This could make it more difficult for smaller or newer crypto companies to comply. Custody providers would be required to obtain written authorization from customers before transferring assets to certain locations. This could slow down or complicate the transfer process for crypto users. The rule treats crypto assets similarly to securities, which means stricter scrutiny and regulation. Some crypto users prefer less oversight and may see this as overly restrictive. There are questions around how crypto staking rewards would be handled under the new rule. Uncertainty here could impact platforms that offer staking services. Overall the rule aims to add protections for crypto users, but does so through traditional financial regulations. Crypto supporters argue this fails to account for the unique nature of digital assets. Although the SEC appears to be attempting to safeguard consumer assets, this new rule in summary appears to do result in the following: increased costs, regulatory burden, compliance uncertainty, and it utilizes traditional frameworks to a new technological space. Sincerely, Anonymous