US SEC Crypto Custody Proposal Advances to White House Review Stage
The SEC has submitted its updated custody rule covering digital assets for registered investment advisers to the White House for review.
The United States Securities and Exchange Commission (SEC) has advanced its revised custody rule to the White House for formal interagency review. The updated framework establishes explicit requirements for registered investment advisers and funds holding digital assets on behalf of clients.
This submission follows the withdrawal of a controversial 2023 proposal and aims to clarify regulatory obligations for institutional crypto custodians. Regulators intend to provide standardized security, auditing, and segregation standards for digital assets managed by institutional entities.
Market participants view the progression toward formal review as a step toward regulatory clarity. Clearer custody frameworks could ease institutional entry and encourage traditional finance firms to offer expanded crypto asset management products.
Key takeaways
- SEC submits updated digital asset custody framework to White House review.
- The new rules target registered investment advisers and investment funds.
- Clear custody standards could facilitate greater institutional crypto participation.