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Coinbase Trust Remains Qualified Custodian Despite Proposed SEC Regulations

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According to reports, Paul Grewal, the chief legal officer of Coinbase, said: \”After the United States SEC proposed to formulate rules, we believe that Coinbas…

Coinbase Trust Remains Qualified Custodian Despite Proposed SEC Regulations

According to reports, Paul Grewal, the chief legal officer of Coinbase, said: “After the United States SEC proposed to formulate rules, we believe that Coinbase Customer Trust Co. will still be a qualified custodian.” It is reported that Coinbase’s trust is chartered by New York, which keeps a large number of cryptocurrency investors’ assets in the United States.

Coinbase and Anchorage responded to the SEC’s proposed new regulations: they will remain qualified custodians after the new regulations are issued

Interpretation of the news:


According to reports, Paul Grewal, the chief legal officer of Coinbase, has made a statement regarding the recent Securities and Exchange Commission (SEC) proposal to formulate rules for cryptocurrency custody. He stated that Coinbase Customer Trust Co. continues to be a qualified custodian despite the proposed regulations.

The significance of this statement lies in the role of qualified custodians in the cryptocurrency industry. Custodians are crucial in the storage and security of digital assets, particularly for institutional investors who require safekeeping and risk mitigation. Qualified custodians are regulated by the SEC and must comply with specific standards to ensure appropriate protections are in place.

Coinbase is one of the largest cryptocurrency exchanges globally, and its trust holds a significant amount of cryptocurrency assets for US customers. Being a regulated custodian, Coinbase provides a certain level of assurance and security for its users and has earned the trust of many institutional customers.

The SEC’s proposal for cryptocurrency custody regulations aims to establish standard frameworks for custodianship to protect investors and market integrity. It requires custodians to comply with various obligations, including keeping accurate records, performing audits, and having adequate insurance coverage.

In conclusion, despite the SEC proposal for cryptocurrency custody regulations, Coinbase’s trust remains a qualified custodian that is regulated and compliant with SEC standards. This is a reassuring statement for cryptocurrency investors who entrust their assets to Coinbase’s trust, as they can continue to receive the benefits of a regulated custodian, such as transparency, accountability, and security.

Overall, the statement reinforces Coinbase’s commitment to complying with regulatory requirements and maintaining its reputation as a trustworthy and dependable cryptocurrency custodian.

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