“Instead of focusing on the lack of client asset segregation at digital asset exchanges, which is also true with securities held in ‘street name’ at DTCC, legislators should work on a Digital Asset Investor Protection Act that mirrors the Securities Investor Protection Act,” said Dave Weisberger, co-founder and CEO of CoinRoutes, Inc. It could give investors “primary status in bankruptcy proceedings,” and it could also set up a backstop fund to cover losses like the one securities investors have.
Source: https://www.coindesk.com/policy/2022/05/18/biden-administration-wants-crypto-exchanges-to-separate-customer-and-corporate-funds/?utm_medium=referral&utm_source=rss&utm_campaign=headlines