Speaking at an Investor Advisory Committee meeting Thursday, Gensler said a recently proposed rule directing investment advisers to look to qualified custodians for storage of assets – including cryptocurrencies – makes “important enhancements” to existing protection rules. He also said crypto exchanges should not be considered safe under those guidelines.
“Based upon how crypto trading and lending platforms generally operate, investment advisers cannot rely on them today as qualified custodians,” Gensler said. “To be clear: Just because a crypto trading platform claims to be a qualified custodian doesn’t mean that it is.”
Source: SEC Chair Gensler Says Crypto Exchanges May Not Be ‘Qualified Custodians’