SEC Crypto Custody Proposal Leaves DeFi Vaults in Limbo, Bitwise Counsel Says
A new SEC crypto custody proposal leaves decentralized finance vaults facing regulatory uncertainty, according to legal counsel at Bitwise.
A new cryptocurrency custody proposal from the U.S. Securities and Exchange Commission has created regulatory uncertainty for decentralized finance vaults, according to legal counsel at asset management firm Bitwise reported by TradingView.
Custody Proposal Affects DeFi
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The regulatory framework proposed by the SEC outlines custody standards for digital assets. However, legal counsel at Bitwise indicated that the draft rules fail to provide clear operational boundaries for decentralized protocols, leaving DeFi vaults in regulatory limbo.
Key facts
- The U.S. SEC introduced a new proposal addressing crypto custody standards.
- Bitwise counsel stated that the proposal leaves DeFi vaults in regulatory limbo.
- The regulatory draft lacks clarity on how decentralized vault structures fit under proposed custody rules.
Source: news.google.com
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