XRP Lawyer: Hidden Agenda Behind SEC’s Crypto Custodian Shake Up

XRP News: Amid much speculation about the outcome of the XRP Vs SEC lawsuit, Attorney John Deaton, who represents XRP holders, made an observation about the U.S. Securities and Exchange Commission’s (SEC) recent proposal to change rules on custody of assets. The recent rule change from SEC, after finalization, would affect crypto custodians, who would then have to ensure independent audits on user assets. However, these sweeping changes could benefit mainstream financial companies, who have the advantage of regulatory compliance record as against the disrepute crypto companies bagged in the last 12 months.

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It is widely known that Wall Street banks have long been eyeing to gain a foothold in the crypto market. But it was a lack of regulatory clarity that put the big corporations on the sidelines of cryptocurrencies. However, the upcoming rule changes in crypto custody offerings could potentially pave them a way into the world of web 3.0.

Wall Street Banks To Offer Crypto Custody

According to a Bloomberg report, some of the large Wall Street banks are already gearing up to launch their digital asset custody offerings in the wake of the SEC’s rule change in the crypto ecosystem. In addition to this, the traditional companies are becoming increasingly interested in custody services offered by companies with stakes in custody providers. Hence, it is argued by the XRP Lawyer that the proposed rule change is inclined in favor of the mainstream companies than the crypto players.

Also Read: Binance Official Sounds The Alarm: Stricter U.S. Regulations Can Trigger Crypto Washout

Meanwhile, the XRP whales were transferring millions of tokens of late. On chain data shows that the top 100 whales hold more than 70 million XRP tokens.