a16z called on the US SEC to update the cryptocurrency custody rules for registered investment advisers

Venture capital firm a16z is asking the U.S. Securities and Exchange Commission to overhaul how registered investment advisers should protect digital assets, and in a formal letter filed with the SEC’s cryptocurrency task force on April 9, a16z said that registered investment advisers should be able to directly hold crypto assets under certain conditions and within clearly defined safeguards. The SEC’s response to these recommendations may determine the extent to which advisors manage cryptocurrencies without relying on outdated custody models, and a16z is emerging as a key industry voice due to its investment exposure and continued policy engagement. On Thursday, the company published a blog post outlining five core “crypto custody principles” designed to provide a roadmap for reform while protecting investors.