John Deaton believes the crypto custody rule change will assist established enterprises more than crypto players.
Some Wall Street banks are apparently ready to offer digital asset custody in reaction to the SEC rule shift in crypto.
Cryptocurrency custody is more likely to benefit established businesses than crypto players.
Attorney John Deaton, who represents XRP investors, offered a comment regarding the U.S. Securities and Exchange Commission's (SEC) recent proposal to modify rules on asset custody amidst much speculation regarding the outcome of the XRP Vs SEC lawsuit. After being finalised, the new SEC regulation change would have an impact on crypto custodians, who would then need to ensure independent audits on user funds. Nonetheless, these drastic changes might be advantageous to traditional financial institutions because they have a track record of regulatory compliance rather than the bad reputation that cryptocurrency firms have acquired over the past year.
Wall Street banks have long sought to establish a presence in the cryptocurrency industry, as is well known. But, the absence of regulatory clarity was what kept the major firms away from cryptocurrencies. But, impending regulations regarding crypto custody services may give them a foothold in the web 3.0 era.
In response to the SEC regulation change in the crypto environment, some of the major Wall Street banks are reportedly preparing to provide their digital asset custody offerings. Additionally, traditional comapnies are showing an increasing amount of interest in the custody services provided by businesses that have investments in custody providers. The XRP Lawyer contends that the planned rule change is therefore more favourable to traditional businesses than to crypto players.
