BitGo CEO: The SEC's custody rule would be a net positive for crypto

03/09 05:58

According to Coindesk, Mike Belshe, the BitGo CEO and co-founder, said that the short timeline between the FTX exchange's collapse in November 2022 and the U.S. Securities and Exchange Commission’s (SEC) vote in February 2023 to expand the types of digital assets included in the so-called Custody Rule shows that regulators are moving quickly to take actions they perceive will safeguard the crypto industry. As much as regulators have been harped on by crypto insiders for not understanding the space and setting precedents that hamper innovation, requiring exchanges to separate custody from trading will be enormously positive for the future of crypto. In addition, Mike Belshe stated that modern traditional finance segregates business lines such as trading, financing and custody and uses a robust system of checks and balances. It therefore makes sense for digital assets to follow that same framework, learning from the past mistakes of traditional finance.
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