Venture capital firm Andreessen Horowitz (a16z) has urged the SEC to revise regulations governing digital asset custody for registered investment advisers (RIAs). In a response to the SEC’s Crypto Task Force, a16z argues that RIAs should be allowed to hold crypto assets directly under specific safeguards. The firm emphasizes the importance of not treating all crypto assets uniformly and highlights the economic rights associated with these assets that traditional custodians may fail to accommodate. A16z suggests that third-party custodians should enable RIAs to retain these rights and recommends a standards-based approach to custody that reflects the unique characteristics of digital assets. This communication coincides with discussions within the SEC regarding potential adjustments to RIA registration thresholds, signaling a pivotal moment for crypto regulation as the agency evaluates its existing frameworks.

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