SEC Commissioner Peirce Critiques Proposed Custody Rules for Advisers
Commissioner Hester Peirce issued a statement on proposed SEC custody rules affecting investment advisers, regulated funds, and crypto assets.
U.S. Securities and Exchange Commission Commissioner Hester M. Peirce released a formal statement addressing proposed regulatory changes to custody rules governing investment advisers, regulated funds, and cryptocurrency holdings, signaling notable skepticism toward the agency's approach.
Peirce, a Republican commissioner often referred to as "Crypto Mom" for her relatively accommodating stance on digital asset regulation, has previously dissented from SEC positions she views as overreaching. Her characterization of the rulemaking process as a "roller coaster ride" suggests the proposal's complexity and potentially turbulent implications for affected market participants.
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The proposed rules would affect how investment advisers and regulated funds safeguard client assets, with a separate component targeting the still-contested question of how digital assets and cryptocurrencies should be held in custody. Custody standards are a central concern for regulators seeking to protect investors from misappropriation or loss of assets.
Crypto custody in particular has drawn intense scrutiny following high-profile collapses in the digital asset sector, prompting calls from lawmakers and regulators alike for clearer, enforceable standards. How the SEC ultimately frames qualifying custodians for digital assets could reshape which firms are permitted to serve that market.
The full scope of Peirce's objections or endorsements within the statement was not detailed in the source material, but her public record suggests a preference for rules that expand market access rather than restrict it. Continue reading at Speeches and Statements.
