News View Non-AMP

SEC Faces Backlash from Titans: JPMorgan, Crypto Firms, and Colleague Agency Unleash Fury on Regulator!

Published by
Sohrab Khawas

The US Securities and Exchange Commission (SEC) has come under fire for its recent proposal regarding the custody of digital assets. JPMorgan, several crypto firms, and a fellow agency have criticized the SEC for its narrow interpretation of the law, which they say could harm the industry.

JPMorgan and Crypto Firms Unite Against SEC

According to reports, JPMorgan Chase & Co. has submitted a letter to the SEC criticizing the regulator’s proposed rule, which would require all digital asset custodians to store the assets with a qualified custodian. JPMorgan reportedly argued that the rule would limit investor choice and hinder innovation in the digital asset space.

In addition to JPMorgan, several other crypto firms have also come out against the proposed rule. Coinbase, the largest US cryptocurrency exchange, reportedly submitted a letter to the SEC stating that the rule would create “unintended and unnecessary barriers to entry” for digital asset custodians.

Furthermore, the Commodity Futures Trading Commission (CFTC), a fellow agency, also criticized the SEC’s proposal. In a separate letter, the CFTC argued that the SEC’s approach could lead to regulatory overlap and confusion for market participants.

Pressure Mounts on SEC to Address Digital Asset Custody

The SEC’s proposal comes at a time when the digital asset industry is gaining increased institutional attention and investment. The regulator has been under pressure to clarify its stance on digital assets, particularly with regard to custody and security.

The proposed rule has been under review by the SEC since last year and is intended to provide a regulatory framework for the custody of digital assets. However, the backlash from industry firms and regulatory agencies may delay or even derail the rule’s implementation.

As the regulator continues to grapple with the complexities of the digital asset space, it remains to be seen how it will balance investor protection with industry growth and innovation.

Sohrab Khawas

Sohrab is a passionate cryptocurrency news writer with over five years of experience covering the industry. He keeps a keen interest in blockchain technology and its potential to revolutionize finance. Whether he's trading or writing, Sohrab always keeps his finger on the pulse of the crypto world, using his expertise to deliver informative and engaging articles that educate and inspire. When he's not analyzing the markets, Sohrab indulges in his hobbies of graphic design, minimal design or listening to his favorite hip-hop tunes.

Recent Posts

Strong ETF Demand Drives $157 Million Bitcoin Purchases, $65 Million in Ethereum

On July 28, U.S. spot Bitcoin ETFs saw net inflows of $157.1million, with Ethereum ETFs…

July 29, 2025

Billions Flow Into Crypto—But 10x Research Warns Big Trouble Ahead

While billions are flowing into crypto as its market cap has jumped to $3.89 trillion…

July 29, 2025

“CoinDCX Not for Sale”, Says CEO Sumit Gupta Amid Coinbase Acquisition Rumours

As global crypto adoption expands, all eyes are turning to Asia—and especially India—as the next…

July 29, 2025

Lido Founder Uses $85M Borrowing to Shift 15,800+ ETH on Exchange

Blockchain analytics firm Lookonchain reports that Konstantin Lomashuk, founder of Lido, borrowed 85 million USDT…

July 29, 2025

Bill Miller IV Explains Bitcoin’s Edge Over Ethereum and Solana

Bill Miller IV, CIO of Miller Value Partners, stated Bitcoin’s unique decentralized governance and proof-of-work…

July 29, 2025

SharpLink’s Joe Lubin Accelerates Ethereum Accumulation to Challenge BitMine

SharpLink Gaming, led by Ethereum co-founder Joe Lubin, is rapidly increasing its Ethereum holdings to…

July 29, 2025