It looks like the SEC might be getting in the way of a potential connection between the crypto and traditional financial worlds. According to some insiders, the SEC might put a damper on hedge funds, pension funds, and private equity firms working with crypto custodians.
On February 15th, the SEC could be proposing a rule change that would make it tougher for crypto firms to be qualified custodians. These custodians are the ones with the power to hold and store digital assets for their clients.
Now, we all know that hedge funds and some pension funds need these qualified custodians to keep their crypto assets safe and sound. But if this rule change goes through, these bigwig investors might have to take their funds elsewhere. Plus, they might have to deal with surprise audits of their custodial relationships and other checks.
The Tale SEC in Crypto Space!
The regulators are cracking down on the crypto space, and the SEC is leading the charge! Just last week, Kraken’s crypto-as-a-staking service got shut down because of the SEC’s watchful eye. And it’s not just Kraken – the SEC has been trying to figure out who can be qualified custodians of crypto assets for the past two years. That’s like trying to find a needle in a haystack while wearing a blindfold!
Unfortunately, all these SEC crackdowns have dampened the market sentiment, and Bitcoin and other cryptocurrencies are feeling the pressure. It’s like when your parents ruin your vibe by telling you to clean your room right when you’re in the middle of a sick gaming sesh.
But wait, there’s more! If the SEC wants to make any rule changes, all five of the commissioners have to approve it and put the proposal up for public comment. Then, they have to vote on it AGAIN after taking feedback into account. It’s like they’re trying to jump through a million hoops just to mess with us crypto lovers.