SEC Chair Gensler Casts Doubt On Crypto Exchanges As Safe Custodians
SEC Chair Gary Gensler has raised concerns about whether crypto exchanges are qualified to act as custodians of digital assets. In a recent House Financial Services Committee hearing, Gensler emphasized the need for investor protection and said that crypto exchanges might not have the same level.
According to Gensler, the SEC is “digging into” whether crypto exchanges provide adequate digital asset custody. He noted that the agency focuses on exchanges that allow trading in tokens considered securities under US law. The custody issue has become increasingly important as institutional investors enter crypto. These investors often require custodial services to store their digital assets securely. However, there have been concerns about the security and reliability of some custodians, particularly those not regulated by traditional financial authorities.
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