SEC Chair, Gensler, has stated that cryptocurrency exchanges may not meet the standards required to be considered as "qualified custodians."

Gary Gensler, Chair of the SEC, has expressed his disagreement with the notion that cryptocurrency exchanges can serve as reliable qualified custodians for investment advisers. During a meeting of the Investor Advisory Committee, Gensler commented on a proposed rule which requires investment advisers to use qualified custodians for storing assets, including crypto, stating that this rule improves current protection regulations. Gensler further emphasized that crypto exchanges cannot be deemed reliable under these guidelines, given the way they typically operate. He clarified that simply claiming to be a qualified custodian is insufficient proof of reliability.