SEC Advances Revised Digital Asset Custody Rules to White House
The US SEC has submitted its updated digital asset custody framework to the White House for formal review.
The US Securities and Exchange Commission has sent a revised custody regulatory proposal covering investment advisers and funds to the White House for final review. The updated package follows the withdrawal of an earlier 2023 proposal and seeks to formalize custody standards for digital assets.
Clarifying custody obligations is essential for institutional market participants, who require clear regulatory perimeters before allocating significant capital to digital asset strategies. The new rules aim to resolve longstanding ambiguities regarding qualified custodians and asset safeguarding.
If enacted, the framework could streamline institutional onboarding and provide traditional financial custodians with clearer compliance pathways, potentially lowering counterparty risk for institutional crypto investments.
Key takeaways
- The SEC sent its revised crypto custody framework to the White House for review.
- The proposal updates rules for investment advisers and asset managers.
- Clearer custody guidelines may encourage deeper institutional capital integration.