Coinbase calls for a revision of the misguided RIA regulation

Coinbase calls for a revision of the misguided RIA regulation

Coinbase has called for certain changes to the proposed rule in relation to the obligations of registered investment advisors (RIA) to keep customer assets for qualified.

Even if the United States Securities and Exchange Commission (SEC) classifies Coinbase Custody as a "qualified storage", the crypto exchange believes that the revised RIA rule makes "unjustified assumptions about the custody practice".

revisions required

The Chief Legal Officer of the company based in San Francisco, Paul Grewal, considers the proposal entitled "Safeguarding Advisory Client Assets, Proposed Rule 223-1" to be "miscarried".

In a new letter to the security supervision, Grewal emphasized the need to make several revisions. He also said that certain assumptions for the proposal were unnecessary and inappropriate and could prove to be "disadvantageous" for consumer protection for various asset classes, including crypto, "regardless of whether they are securities or not".

The letter advocated that the SEC should continue to define state trustees and other state -regulated financial institutions as "qualified storage". Grewal also suggests enabling a limited commitment to non-qualified custody and canceling the ban on RIA customer transactions on crypto exchanges that are not qualified storage.

The executive also pointed out that "the SEC regulation should adapt the care standards to the investment class and the customer type", while at the same time it is enabled to negotiate your own contracts.

"We appreciate the opportunity to get involved, and we look forward to working with the SEC to do this correctly - the public regulations are a crucial step to provide the market further clarity."

Coinbase vs. sec: regulatory shortage

Coinbase has recently been subjected to enormous official control in the country. The SEC had also delivered to the crypto exchange with a Wells Notice, which officially initiated an enforcement lawsuit against the stock exchange. While the company's CEO, Brian Armstrong, confirmed that there were no plans for relocating abroad, he also emphasized that Europe was "incredibly inviting" on the regulatory front.

Since the United States does not create regulatory clarity, Coinbase has promoted international expansion. The company recently introduced Coinbase International Exchange, a platform for crypto derivatives based on the Bermudas for institutional customers outside the USA.

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