a16z Calls for SEC Update on Crypto Custody Rules for Advisors

Venture capital giant Andreessen Horowitz (a16z) has urged the U.S. Securities and Exchange Commission (SEC) to update its regulations regarding crypto custody for registered investment advisors. In a letter submitted to the SEC’s crypto working group, a16z proposes allowing these advisors to directly hold digital assets under specific conditions while adhering to stringent security protocols. The firm suggests that until new rules are in place, the SEC should provide interim guidance on implementing these arrangements, fostering clarity and facilitating smooth integration of crypto assets into existing investment portfolios.