Grayscale: New SEC Regulations May Prevent It from Custodying Crypto Assets through Coinbase

ChainCatcher News, the U.S. Securities and Exchange Commission (SEC) has proposed a rule requiring investment platforms to be responsible for the secure custody of their clients' cryptocurrency funds. In a letter sent to the SEC on May 8, Grayscale CEO Michael Sonnenshein stated that the SEC's proposed new regulations regarding the protection of customer crypto fund custody would prevent Grayscale from continuing to store its Bitcoin and Ethereum in Coinbase's custody department. This proposal may also prohibit investors from using third parties to store their clients' funds.

It is reported that Coinbase currently holds $5.4 billion worth of Bitcoin and Ethereum for Grayscale (Grayscale). (Source link)