In a recent IFLR article titled “Crypto Custody Rule Change Reignites Commodity vs. Security Debate,” Schulte Roth & Zabel partner Christopher Avellaneda analyzed a proposed modification of the SEC’s custody rule under the Investment Advisers Act of 1940, which has sparked the question of whether crypto assets should be defined as securities or commodities.
“The update would repeal and replace the current custody rule with a new rule called the safekeeping client assets rule,” said Chris. “Several of the proposed changes will meaningfully impact crypto, although they’re not limited to it. The proposal has significant ramifications for the entire private funds and asset management industry.”
Read the article here.