Main navigation

Coinbase Hits Back at SEC’s Crypto Custody Proposal

Wed, 02/15/2023 - 20:51
article image
Alex Dovbnya
Paul Grewal, the company’s chief legal officer, took to Twitter to announce that Coinbase Custody Trust Co. is currently a qualified custodian and will remain so
Coinbase Hits Back at SEC’s Crypto Custody Proposal
Cover image via
Read U.TODAY on
Google News

Coinbase, one of the largest cryptocurrency exchanges in the world, has responded to a  recent proposal by the Securities and Exchange Commission (SEC) that is related to cryptocurrency custody.

According to Paul Grewal, the company's chief legal officer, Coinbase Custody Trust is a qualified custodian today and will remain so tomorrow despite the SEC's most recent move.

Grewal indicated that the proposal was just the beginning of what appears to be a long journey. "This is not a final action — it’s just the first step in a long process that requires the SEC to collect public views before considering next steps," he wrote.    

While commending the SEC for following the proper procedures for public rulemaking, the chief legal officer stressed that the proposal is just that – a proposal.  

The regulator responsible for policing Wall Street has proposed new rules to increase the safety of customer assets, including alternative assets like art and cryptocurrencies.

The SEC has suggested that investment advisers should secure all client assets they manage with qualified custodians. This comes after the high-profile collapse of several crypto companies, which led to the revelation that customer funds were not as secure as advertised.

Ex-Coinbase Product Manager Pleads Guilty to Insider Trading
The proposed rules would apply to all asset classes, but much of the discussion has been about their application to crypto.

Investment advisers would have to draw up written agreements with qualified custodians to ensure client assets were protected in case of custodian collapse.

article image
About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at