https://www.sec.gov/news/speech/gensler-remarks-iac-030223#_ftnref5
On March 3rd, Gary Gensler, the Chairman of the SEC, announced on the SEC's website that he had joined the Investor Advisory Committee. The Committee recently submitted a new investment adviser protection rule, which expands custodial rules to cover all of an investor's assets, not just their funds or securities, in accordance with a 2010 Congressional mandate. The proposed rule would also require written agreements between advisers and custodians, increase requirements for foreign institutions serving as custodians, and explicitly extend safeguard rules to fully delegated transactions.
In the article, Gary Gensler emphasized that, given the general operating model of cryptocurrency trading and lending platforms, cryptocurrency trading platforms will no longer be able to qualify as custodians relying on the role of investment advisers. To become a "qualified" custodian under the new rules, platforms need to ensure that all assets are properly segregated, undergo annual audits by public accountants, and adopt other transparency measures.