Galaxy: There is a structural conflict between the SEC's custody rules and DeFi demand

Galaxy posted on platform X that many registered investment advisors (RIA) are struggling to respond to clients' demands to allocate funds to DeFi while meeting the compliance requirements of the SEC's custody rules. The main pain point is that current regulations require client assets to be held by qualified custodians, effectively excluding self-custody options and making it difficult for traditional financial accounts to directly participate in DeFi strategies.