a16z filed an open letter with the SEC advocating for revisions to cryptoasset custody rules

Gate.io News bot, venture capital firm a16z submitted an open letter to the U.S. Securities and Exchange Commission (SEC) proposing amendments to the crypto asset custody rules for registered investment advisers (RIAs).

According to Decrypt, a16z’s letter proposes that RIAs should be allowed to self-custodian crypto assets and security tokens, subject to certain conditions, and such actions do not need to be considered a violation of the current “custody rules” or fiduciary duties.

a16z pointed out that the existing rules cannot be adapted to new types of crypto assets with on-chain governance rights and income attributes. The company also advised the SEC to move away from fixed categorizations such as “hot and cold wallets” and instead adopt a standardized regulatory framework based on “security, transparency, and independent verification.”