Several major players in the financial industry, including JPMorgan Chase & Co. and various crypto firms, have criticized the US Securities and Exchange Commission (SEC) for its recent proposal on digital asset custody.

The proposed rule would require all custodians of digital assets to store them with a qualified custodian, a move that JPMorgan argues would limit investor choice and hinder innovation. Coinbase, the largest US cryptocurrency exchange, has also expressed concerns that the rule would create unnecessary barriers to entry for digital asset custodians.

The Commodity Futures Trading Commission (CFTC) has also criticized the proposal, arguing that it could lead to regulatory overlap and confusion for market participants.