SEC Submits Revised Crypto Custody Rule for White House Review
The U.S. Securities and Exchange Commission has sent a revised digital asset custody framework covering registered investment advisers to the White House.
The U.S. SEC has submitted an updated regulatory rule regarding digital asset custody to the White House for final review. The updated framework establishes compliance requirements for registered investment advisers and investment companies holding cryptocurrency on behalf of clients.
This submission follows the withdrawal of a controversial 2023 proposal that met fierce opposition from traditional finance and crypto custodians alike. The rewritten proposal seeks to clarify safekeeping obligations, segregation of assets, and authorized custodian qualifications for digital asset management.
Finalizing institutional custody standards could remove critical roadblocks preventing large asset managers from entering crypto markets, potentially driving institutional inflows once regulatory clarity is formalized.
Key takeaways
- SEC advanced revised crypto custody standards to the White House.
- The proposal targets registered investment advisers and funds.
- Clear rules may reduce regulatory friction for institutional allocators.