The SEC proposed expanding the list of qualified custodians for crypto assets to include state-chartered trust companies. This proposal is aimed at enhancing competition and regulatory clarity in the asset custody market.
SEC's Proposal for Trust Inclusion
SEC Commissioner **Mark T. Uyeda** suggested on April 25 that the SEC should allow state-chartered trust companies to serve as qualified custodians for crypto assets. This proposal emphasizes the push to enhance competition in the asset custody market. Additionally, discussions were held regarding amendments to special purpose broker-dealer regimes to align with contemporary practices.
Industry's Reaction to the Proposal
The consideration to include state-chartered trust companies aligns with historical financial trends where both state and federally chartered entities have competed, resembling the competitive ethos of the U.S. dual banking system.
Impact on the Crypto Market
Bitcoin (BTC) currently trades at $94,932.25, with a market cap of $1.88 trillion, dominating 63.47% of the market according to CoinMarketCap. Its price has seen a 0.74% increase in the past 24 hours. The Coincu research team suggests potential regulatory shifts may have mixed effects on market dynamics.
Expanding the list of qualified custodians could significantly increase custodial options for institutions, which in turn may impact competition and innovation in the crypto asset market.
