Banks, lawmakers, and crypto companies such as Circle, Coinbase, and a16z have criticized a proposed SEC custody rule that would require changes for crypto firms. The rule would allow the SEC to oversee all assets, including funds and securities, under adviser supervision. The proposed rule has faced significant opposition from the traditional financial industry and the crypto industry. As of May 16, 2023, the SEC custody rule proposal is still under consideration. The proposed rule would require investment advisers to maintain client assets with a qualified custodian that has "possession or control" of the assets. The proposal would also redesignate the current Custody Rule as a new Rule 223-1 (Safeguarding Rule) and amend Rule 204-2 (Books and Records Rule) to require additional disclosures. The proposal has broad implications for investment advisers, custodians, and independent public accounting firms.