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

Ripple Price Prediction as XRP ETF Approval Odds Near 100%

XRP is once again making headlines as the odds of a Spot XRP ETF approval…

July 6, 2025

Best Memecoin To Buy Now? Pepeto Could Mirror Doge and SHIB Past Price Rallies

The memecoin world is going through a big transformation. Where tokens once thrived purely on…

July 5, 2025

These 4 Meme Coins Could 20x in 2025 as Spot Dogecoin ETF Nears SEC Approval

The meme coin market is heating up like never before—and 2025 might just be the…

July 5, 2025

Liked by Investors: This $0.03 Coin Has the Same Upside Potential as XRP (XRP) in Early Days

Years ago, XRP traded under a penny, shrugged off by many who didn’t fully grasp…

July 5, 2025

Why Remittix’s Unique PayFi Offering Has Cardano & XRP Whales Circling After $15 Million Is Raised!

Remittix is quickly gaining ground as a serious crypto player, especially after raising over $15.9…

July 5, 2025

XRP’s Tight Range Signals Imminent Move–Experts Predict Major Breakout

XRP is standing out with exceptional strength amid broader volatility in the crypto market. Analysts…

July 5, 2025