Congressmen Flood & Torres Urge SEC Chair to Maintain Existing Definition of "Qualified Custodian" in Final Rulemaking

WASHINGTON, May 26 -- Rep. Mike Flood, R-Nebraska, issued the following news release:

Congressman Mike Flood (R-NE) and Congressman Ritchie Torres (D-NY) recently wrote the Securities and Exchange Commission (SEC) Chair Gary Gensler regarding the commission's draft changes to rule 206(4)-2, the Commission's custody rule under the Investment Advisors Act of 1940.

Specifically, the Congressmen provided feedback on question 19 within the proposal, which asked for comments on whether the final rule should be changed to permit "only banks or savings associations that are subject to Federal regulation and supervision to act as qualified custodians?"

"The current custody rule includes both state-chartered banks and state-regulated trust companies as eligible to be qualified custodians" wrote the Congressmen, "When finalizing this rule, we strongly urge you to continue to allow for state-chartered banks and state-regulated trust companies to operate as qualified custodians."

During his time in the state legislature, then-Senator Flood was the author of the Nebraska Financial Innovation Act, a law that will allow state-chartered banks in Nebraska to custody digital assets.

Congressman Flood and Torres are members of the Financial Services Committee. A full copy of the letter can be found here (https://flood.house.gov/sites/evo-subsites/flood.house.gov/files/evo-media-document/5.18.23-sec-custody-rule-ltr.44.pdf).

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Original text here: https://flood.house.gov/media/press-releases/congressmen-flood-torres-urge-sec-chair-maintain-existing-definition-qualified