TechFlow news, April 17 — According to Decrypt, venture capital firm a16z submitted a formal letter to the SEC's Crypto Task Force on April 9, calling for a comprehensive revision of custody rules for registered investment advisors (RIAs) regarding crypto assets. a16z recommended allowing RIAs to directly hold crypto assets under specific conditions and with clear safeguards. The firm subsequently released five core "crypto custody principles," aiming to provide a roadmap for reform while protecting investor rights.
a16z pointed out that current regulations were designed for traditional financial systems and are ill-suited for crypto assets requiring private key management and on-chain voting rights. The firm emphasized that different crypto assets require different custody solutions, and traditional custodial accounts may fail to enable economic or governance rights such as staking, yield farming, or on-chain voting.
