Coinbase, one of many largest cryptocurrency exchanges on the planet, has responded to a  current proposal by the Securities and Alternate Fee (SEC) that’s associated to cryptocurrency custody.

In line with Paul Grewal, the corporate’s chief authorized officer, Coinbase Custody Belief is a professional custodian right now and can stay so tomorrow regardless of the SEC’s most up-to-date transfer.

Grewal indicated that the proposal was just the start of what seems to be a protracted journey. “This isn’t a remaining motion — it’s simply step one in a protracted course of that requires the SEC to gather public views earlier than contemplating subsequent steps,” he wrote.    

Whereas commending the SEC for following the right procedures for public rulemaking, the chief authorized officer burdened that the proposal is simply that – a proposal.  

The regulator chargeable for policing Wall Road has proposed new guidelines to extend the security of buyer property, together with different property like artwork and cryptocurrencies.

The SEC has urged that funding advisers ought to safe all consumer property they handle with certified custodians. This comes after the high-profile collapse of a number of crypto corporations, which led to the revelation that buyer funds weren’t as safe as marketed.

The proposed guidelines would apply to all asset courses, however a lot of the dialogue has been about their utility to crypto.

Funding advisers must draw up written agreements with certified custodians to make sure consumer property have been protected in case of custodian collapse.