• U.S. regulators have recently taken enforcement actions against Paxos Trust Company, the issuer of Binance USD stablecoin, and other digital assets firms.
• The SEC is proposing a new rule that will determine the types of services digital assets firms can offer, and it plans to vote on this proposal this Wednesday (February 15).
• If approved, the proposal could heavily impact major clients of custodians such as private equity firms, pension funds, hedge funds etc.
Regulatory Enforcement Actions by US Regulators
The crypto space is apprehensive due to the recent enforcement actions by U.S. regulators on some firms. One of the latest reports is about Paxos Trust company, the issuer of Binance USD stablecoin. The United States Securities and Exchange Commission (SEC) revealed its plans to sue the blockchain firm. Also, the New York Department of Financial Services (NYDFS) ordered Paxos to stop issuing BUSD tokens.
SEC Proposal for Crypto Companies’ Services
In a new development, the SEC now targets crypto companies, even those with operational licenses. The regulator is working on a new proposal this week to determine the type of products and services digital assets firms will offer. Bloomberg reported that the SEC plans to vote on a Wednesday, February 15th on rule changes regarding digital asset firms’ services in order for them to be qualified as custodians with all necessary feedback reported as well.
Potential Impact of Proposed Rule Change
If the commission implements the new rule, it will impact heavily on major clients of custodians including private equity firms, pension funds, hedge funds etc.. It could make it hard for certain crypto companies to hold digital assets on behalf of their clients as well as necessitate impromptu audits conducted by regulators regarding their custodial relationships with financial institutions at any given time without warning or prior notice given beforehand even if they are licensed operationsally or not .
BitStarz Player Lands Record Win
Don’t wait! Jump on this Crypto Deal and get a 150% Welcome Bonus plus 100 Free Spins on your deposit today! BitStarz Player Lands $2,459 124 record win! Could you be next big winner? 570% up to 12 BTC + 300 Free Spins for new players & 1 BTC in bonuses every day only at Wild io Play Now!
Conclusion
The outcome from this week’s voting process may lead crypto companies seeking alternative places where they can move their clients’ digital asset holdings while also creating more regulations that crypto related companies need to abide by which could potentially limit what kind of services they are able provide if approved despite being licensed operationally or not .