Gemini will be qualified custodian under proposed SEC rules

Crypto exchange Gemini would be considered a qualified custodian if the Securities and Exchange Commission's (SEC) proposed expansion becomes official, according to Gemini co-founder Tyler Winklevoss.

Winklevoss published a thread on his Twitter account and said:

“Gemini Trust Company, LLC, is a New York trust company and has been a fiduciary and qualified custodian under the New York Banking Law since 2015. This will continue to be the case under any new SEC rule that comes into effect.”

He added that the company undergoes the same examinations as banks and is subject to capital, BSA/AML, and cybersecurity requirements. Gemini Trust Company also acquired its custody products' SOC 1 Type II and SOC 2 Type II certifications.

The SEC chair Gary Gensler proposed to expand the federal custody rules to include crypto exchanges on Feb. 15. If the proposal becomes official, crypto exchanges will have to separate their funds from their users and go under heavier registration processes to be considered a qualified custodian.