SEC begins reviewing traditional investment advisers that offer digital asset custody services to their clients

According to Reuters, the U.S. Securities and Exchange Commission (SEC) has begun a review of traditional Wall Street investment advisers who may offer their clients digital asset custody without proper qualifications.The publication’s sources said the investigation has been ongoing for months and has accelerated significantly since the collapse of the cryptocurrency exchange FTX.Much of the SEC’s efforts are aimed at finding out whether registered investment advisers are complying with rules and regulations regarding the safekeeping of clients’ crypto assets.By law, investment advisory firms must be “qualified” to provide custody services to clients and comply with the custody safeguards set forth in the Investment Advisers Act of 1940.