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In early November 2020, the staff of the U.S. Securities and Exchange Commission (“SEC”) Division of Investment Management (“IM Division”), in consultation with the SEC’s “FinHub” staff, issued a statement in response to a No-Action Letter from the Wyoming Division of Banking purporting to provide interpretive guidance on both Wyoming and federal securities laws, including in the area of custody of digital assets.
In sum, the SEC staff’s statement provides the following takeaways. Unfortunately, these are neither newsworthy nor helpful in terms of regulatory clarity.
The SEC is still trying to formulate the confines of who should and can be a “qualified custodian” with respect to digital assets.
Paxos, the cryptocurrency partner of
PayPal Holdings Ltd (NASDAQ:PYPL), has filed an application with the Office of The Comptroller of the Currency (OCC) in order to obtain a charter to form a national bank.
What Happened: The Paxos National Trust would operate out of New York, according to an application first noticed by CoinDesk.
Paxos’ general counsel and chief compliance officer Dan Burstein wrote in a blog post on Wednesday that, if the New York-based company is granted the charter, it would become the “first custodian of digital assets to be regulated at both the state and federal levels.”