a16z Urges SEC to Update Crypto Custody Rules for Advisors

According to Foresight News, a16z has called on the U.S. Securities and Exchange Commission (SEC) to revise the crypto custody regulations for registered investment advisors. In a formal letter submitted to the SEC's crypto working group, a16z emphasized that registered investment advisors should be permitted to directly hold cryptocurrency assets under specific conditions and within clearly defined safeguards. The firm suggested that the commission should offer new guidance to facilitate crypto asset custody arrangements, even if only as an interim measure before new rules are established.