SEC Digital Asset Custody Proposal Reaches White House Review Stage
The U.S. SEC has submitted a revised digital asset custody rule framework for investment advisers and funds to the White House for review.
The U.S. Securities and Exchange Commission has sent a revised custody rulemaking proposal to the White House for interagency review. The updated framework seeks to clarify custodial standards for registered investment advisers and investment companies managing digital assets.
This development follows the withdrawal of an earlier 2023 proposal that faced significant pushback over overly restrictive requirements. Establishing clear qualified custodian rules is critical for institutional asset managers seeking legally sound pathways to hold crypto assets on behalf of clients.
Clearer custody guidelines are expected to reduce regulatory uncertainty for institutional capital in the United States, potentially paving the way for broader asset manager participation in spot crypto products and regulated tokenized funds.
Key takeaways
- The SEC sent an updated crypto custody rule proposal for White House review.
- The revised framework replaces a contentious draft initially proposed in 2023.
- The guidelines aim to clarify qualified custodian standards for investment advisers.