Blockchain Association Responds to Proposed SEC Custody Rule

Washington, D.C. (May 8, 2023) – Today, Blockchain Association submitted a letter responding to the SEC’s Proposed Rule regarding Safeguarding Advisory Client Assets. The proposed rule significantly curtails an investment adviser’s ability to provide digital asset-related services to their clients, and also imposes insurmountable burdens on custodians who wish to custody digital assets. The impact of this rule would be detrimental to the digital assets industry and its participants, entrepreneurs, and developers by reducing the amount of capital available to continue innovating in the U.S. 

The following statement is attributed to Kristin Smith, Blockchain Association CEO: 

“The SEC’s proposed custody rule would severely restrict American investors from investing in digital assets through their registered investment advisers, a result that directly violates the SEC’s mission by making investors less safe and discouraging capital formation. Blockchain Association – on behalf of our more than 100 member companies – submits this response to argue why this proposed rule is bad policy and should be rewritten.” 

Blockchain Associations submits a letter, alongside several of its members.