The Bank Policy Institute (BPI) urges the Securities and Exchange Commission (SEC) to strengthen the requirements of the Cryptography Guard.
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More specifically, BPI, as well as the Association of World Guardians and the Financial Services Forum asks the SEC to adopt the same guarantees and protections for digital asset investors as childcare banks provide for other assets.
Guardian banks held more than $ 234 billions of customer assets worldwide in 2024 and have a history of 80 years of safeguarding customer assets. They do this by joining three basic principles designed to protect investors: segregation of non -monetary assets of the customer, separation of the custody against other financial activities and appropriate control over assets.
In a letter to the management of the SEC, associations ask the SEC to adopt equivalent protections for digital asset investors.
“If the SEC allows Crypto companies or investment advisers to provide childcare services outside the existing qualified detention framework, it is imperative that these childcare providers will be held to just as rigorous standards, in particular the requirements for asset segregation, current regulatory monitoring and prudential mandates equivalent to those who currently govern qualified guards.” “A failure by a cryptographic active guard, whether for financial or operational reasons, could cause immense damages not only to those whose assets were kept, but also to investors in large market bands, thus requiring strong protection of investors.”
Associations have also described certain key recommendations, in particular by creating equal standards for all guards. Any institution dealt with as a qualified guardian for cryptographic assets should meet the same requirements for the segregation of assets. In addition, they say that childcare providers should be held according to rigorous standards, including asset segregation requirements, continuous regulatory surveillance and prudential mandates equivalent to those who currently govern qualified guards.
In addition, they do not recommend self-works by investment advisers. Investment advisers should not be authorized to be self-mets, which means that an investment advisor should not hold and manage the cryptographic assets of customers-there must be a firewall.
When customers’ assets are kept, banks separate these non -monetary assets from the guardian and non -monetary assets of other customers at any time. This helps to prevent the assembly of non -monetary assets and reduces the risk of conflicts of interest and poor financial management. It also helps to simplify the recovery of these assets in the event of failure of an institution.
These protections have been in place for decades and investors expect these guarantees. The association maintains that digital asset investors deserve the same protection as other investors.
