Where’s the Feedback? Commissioner Hester Peirce Wants More Comments for SEC’s Query on Digital Asset Custody

SEC Commissioner Hester Peirce nudged the crypto crowd a bit this week pointing out that feedback on the SEC’s request for comments on digital asset custody is paltry at best. Commissioner Peirce has long been noted for her support of innovation in financial services and a willingness to think outside the box when it comes to the emerging digital asset sector, be they securities or maybe something else.

In a Tweet, Commissioner Peirce pointed to the SEC staff statements on the Wyoming Division of Banking’s “[No Action Letter] NAL on Custody of Digital Assets and Qualified Custodian Status,” as well as “Engaging on Non-DVP Custodial Practices and Digital Assets, March 12, 2019.”

In brief, the Commissioner issued a call to comment to the crypto sector that has been uncharacteristically quiet on the issue.

Affiliated with the discussion is the fact that the SEC issued a statement on the custody of digital assets by “special purpose broker-dealers” at the end of 2020. At that time, the SEC said that they were seeking to “encourage innovation around the application of Securities Exchange Act Rule 15c3-3 to digital asset securities.” The consultation was recently published in the Federal Register, a precursor for new rules, and oddly few comments have filtered to the top here – beyond a hoard of disgruntled XRP holders.

Regarding the Commissioner’s Peirce hope that more industry insiders will share their wisdom when it comes to the SEC staff statement/letter, it must be noted that Prime Trust, a top innovator in the digital asset sector, was the first to share its insight with the regulators. Perhaps, more will follow.

 

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