SEC Commissioner Peirce Weighs In on Custody Rules for Advisers and Crypto
Commissioner Hester Peirce issued a statement on proposed SEC rules governing adviser custody and crypto asset custody requirements.
Securities and Exchange Commission Commissioner Hester M. Peirce released a formal statement addressing proposed regulatory changes to custody rules affecting investment advisers, regulated funds, and cryptocurrency holdings, according to a release from the SEC.
The statement, titled "Roller Coaster Ride," signals Peirce's public position on rule proposals that would reshape how advisers and funds safeguard client assets, including digital assets. Peirce, often referred to as "Crypto Mom" for her relatively accommodating stance toward digital asset regulation, has consistently scrutinized SEC rulemaking that she views as overreaching or poorly calibrated.
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The proposed adviser custody rules and the parallel crypto custody framework represent two of the more consequential regulatory initiatives under consideration at the commission, touching on billions of dollars in assets held on behalf of retail and institutional investors. Custody requirements determine which entities may hold client assets and under what conditions, making them a foundational element of investor protection law.
Peirce's decision to issue a named statement rather than simply vote in silence suggests notable disagreement or concern with at least portions of the proposals as drafted. Commissioners routinely use public statements to signal reservations, build a record for potential legal challenges, or call on industry participants to engage in the comment process.
The full text of Commissioner Peirce's statement is available directly from the SEC. Continue reading at Speeches and Statements.
