• Coinbase factors to an inaccurate rule by the SEC that requires buyer belongings to be held with a certified custodian (QC).
• Coinbase CLO Paul Grewal famous that the proposal solely mentions cryptocurrencies.
• Coinbase talked about a number of proposals of their QC proposal remark letters.

Coinbase not too long ago submitted a Certified Custodian (QC) proposal remark letter to the U.S. Securities and Trade Fee. This remark was in response to the Fee’s Feb. 15 proposal targeted on updating the Funding Advisory Custodian Guidelines. Coinbase Chief Authorized Officer Paul Grewal not too long ago posted a tweet highlighting the identical theme.

Mr. Grewal highlighted the SEC’s current proposal to amend the rule requiring registered funding advisors (RIAs) to carry consumer belongings with certified custodians (QCs). Grewal stated the complete remark letter on the Certified Custodian (QC) proposal was misguided and urged methods to enhance it.

Coinbase CLO additionally spoke of one other risk if the SEC’s proposal is adopted, and Coinbase is assured Coinbase Custody Belief Firm will stay a QC and has already agreed to the spirit of the proposal. stated.

Like different current SEC actions, this proposal unnecessarily specializes cryptocurrencies and makes inappropriate assumptions about custody practices based mostly on securities markets.

Grewal summarized some highlights from Coinbase’s proposal to the SEC, with the primary specializing in defining state-owned belief firms and different state-regulated monetary establishments as QCs. Second, Grewal harassed that the SEC’s proposal might ban RIAs from buying and selling on non-QC crypto exchanges. He stated this is able to not profit RIA or its prospects.

Moreover, Coinbase’s proposals embody strategies on the way to keep away from confusion and performance in business realities between custodians and their prospects. Mr. Guruwal additionally expressed his gratitude for the chance to think about it.