a16z Calls on U.S. SEC to Update Custody Rules for Registered Investment Advisors on Cryptocurrency

Jinse reports that venture capital firm a16z is urging the U.S. Securities and Exchange Commission to undertake comprehensive reforms on how registered investment advisors should protect digital assets. In a formal letter submitted to the SEC's special cryptocurrency task force on April 9, a16z stated that under specific conditions and well-defined safeguards, registered investment advisors should be able to directly hold crypto assets. The SEC's response to these suggestions might determine the extent to which advisors can manage cryptocurrencies without relying on outdated custody models. Due to its investment exposure and ongoing policy involvement, a16z is becoming a pivotal industry voice. On Thursday, the company released a blog post outlining five core "Cryptocurrency Custodian Principles," aimed at providing a roadmap for reforms while protecting investors.