SEC To Vote On Rule Making Crypto Custody Stricter – February 15

📈 30 Second Cryptocurrency Price Summary

Current Bitcoin Price$22,779

Bitcoin price has rallied towards the $23,000 mark today, as it rapidly recovers from its recent correction.

Top-20 altcoins have also continued their rise, as Ether and BNB each gain 2% and Dogecoin sees a 4% rise.

Top Stories for February 15, 2022 🔥

👉 SEC To Vote On Rule Making Crypto Custody Stricter

The US Securities and Exchange Commission (SEC) is set to vote on a proposal to increase the requirements for investment advisers for the custody of assets, including crypto.

The proposed rule would expand current custody requirements and add more protections, such as surprise examinations. The rule would cover all asset classes, including crypto, and require advisers to segregate their investors’ assets.

SEC Chair Gary Gensler warned that investment advisers cannot rely on crypto platforms as qualified custodians, and the proposed rule would require them to enter into a written agreement with qualified custodians to ensure client protection.

👉 Binance CEO CZ Says Industry May Move To Non-Dollar Stablecoins

Binance CEO, Changpeng Zhao (“CZ”), has said that the crypto industry will likely begin using euro, yen, or Singapore dollar-based stablecoins in the future, reducing reliance on US dollar-based stablecoins.

CZ argued that the US government’s recent actions against US dollar stablecoins would prompt the global crypto industry to rely on other currencies to back stablecoins, and that algorithmic stablecoins may also play a larger role in the crypto ecosystem going forward.

His statements come a day after the SEC accused Binance USD (BUSD) of being an unregistered security under US laws.

👉 ECB May Introduce Limits On Banks’ Crypto Holdings

The European Central Bank (ECB) expects European Union banks to introduce limits on their crypto holdings, in line with the Basel Committee on Banking Supervision’s global standards, which will come into effect in 2025.

Cryptocurrencies have been divided into two groups based on the risks they pose, and Bitcoin has been placed in the second, higher-risk category. The ECB has advised banks to be conservative with their capital allocation to such assets, with an exposure limit of below 1% of Tier 1 capital, and a risk weight of 1,250%.