The SEC's policy on crypto custody raises concerns about increasing risks of centralization and cyber attacks.
SEC and Crypto Custody
The SEC's stance on crypto custody, as highlighted by SAB 121, may inadvertently concentrate risks within the cryptocurrency market. Fox Business journalist Eleanor Terrett points out that by discouraging federally regulated banks from holding crypto assets, the SEC is effectively limiting the pool of potential custodians.
North Korean Hackers' Attacks
North Korean hackers are actively targeting crypto products, exacerbating the issue of centralized custody. $3 billion in stolen crypto underscores the need for stronger security measures.
Need for Enhanced Security
ETF issuers must enhance security measures in light of increasing attack risks. Centralized crypto custody may make the ecosystem more vulnerable to targeted attacks.
Ensuring the security of crypto custody is becoming increasingly important amid growing threats and centralization. New approaches are needed to mitigate attack risks.
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