SEC is Looking Into Crypto Storage by Investment Advisers

The Securities and Exchange Commission has started to review registered investment advisors in order to make sure that they comply with rules and by-laws in relation to the custody of digital assets.

According to Reuters, the regulator started to study the situation a few months ago. However, the recent collapse of crypto derivatives platform FTX accelerated the process.

Registered investment advisors are required by law to be qualified to offer custodial services in addition to complying with the custody guarantees set out in the Investment Advisers Act of 1940.

The emergence of information about the investigation suggests the regulator was “not turning a blind eye” to traditional investment firms.