a16z Urges SEC to Revise Custody Rules for Cryptocurrency Assets

On April 17th, COINOTAG reported that a16z has urged the U.S. Securities and Exchange Commission (SEC) to revise its custody regulations for registered investment advisors in the context of cryptocurrency. The venture capital firm conveyed its position through a formal letter addressed to the SEC’s dedicated crypto working group. a16z advocates that investment advisors should have the ability to directly hold cryptocurrency assets, provided that specific conditions and clear safeguards are established. The letter emphasizes that “the Commission should provide new guidance to facilitate custody arrangements for crypto assets, even if only as an interim measure before new rules are set forth.” This call to action reflects the ongoing dialogue regarding regulatory compliance and the evolving landscape of digital assets.