SEC Commissioner Peirce Weighs In on Custody Rule Proposals
Commissioner Hester Peirce issues a statement on proposed adviser and regulated fund custody rules, including crypto custody provisions.
U.S. Securities and Exchange Commission Commissioner Hester M. Peirce issued a formal statement addressing proposed custody rules affecting investment advisers and regulated funds, with particular attention to provisions governing the custody of cryptocurrency assets.
Peirce, who has previously been a vocal critic of the SEC's approach to digital asset regulation, characterized the proposed rulemaking in terms suggesting a turbulent and uncertain path forward — a stance consistent with her broader skepticism toward expansive regulatory action in emerging asset classes.
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The statement touches on how the proposed rules would govern the safeguarding of client assets held by registered investment advisers, a longstanding area of regulatory focus that has gained renewed urgency as digital assets have become more prevalent in institutional and retail portfolios.
Crypto custody has emerged as a central compliance challenge for the asset management industry, with regulators and market participants debating which entities qualify as qualified custodians and how existing frameworks apply to blockchain-based assets. Peirce's statement signals continued internal debate at the Commission over how aggressively to extend traditional custody requirements into the digital asset space.
The statement represents one viewpoint within the Commission as the SEC continues to deliberate on rules that could reshape how advisers and funds hold and account for a broad range of assets. Continue reading at Speeches and Statements.
