Applauds SEC Action to Expand Safeguarding Rule
Continues to Push SEC to Apply the Customer Protection Rule to Crypto Exchanges
WASHINGTON, D.C. – Today, the American Securities Association (ASA) released a statement regarding the U.S. Securities and Exchange Commission’s (SEC) proposal to amend and redesignate rule 206(4)-2 under the Investment Advisers Act of 1940 related to the safeguarding of client assets.
“While this is a first step to protect crypto investors from bad actors, the SEC must apply the Customer Protection Rule to every crypto exchange that holds customer funds because it’s the only way to restore trust and confidence among market participants in this market,” ASA CEO Chris Iacovella said. “The American people need to know their money is safe and protected when they invest in any market overseen by U.S. regulators, and without this protection, crypto investors will continue to be subject to fraud.”
Last year, ASA published an opinion in Fox Business reminding the SEC they have the authority to extend the Customer Protection Rule and urging them to apply it to every crypto exchange that holds customer funds.