US SEC Sends Revised Digital Asset Custody Rules to White House
The SEC has submitted its updated custody framework for registered investment advisers to the White House for formal review.
The U.S. Securities and Exchange Commission has forwarded a revised custody rule covering registered investment advisers and funds to the White House Office of Management and Budget for review. The move follows the withdrawal of an earlier controversial 2023 proposal.
The upcoming regulation aims to establish clear standards for holding digital assets, addressing ambiguities surrounding qualified custodians and institutional security protocols. Clear federal custody definitions are vital for traditional financial institutions managing crypto investment vehicles.
The advancement toward final rulemaking reduces regulatory uncertainty for institutional custodians and asset managers. Industry participants expect compliant custody channels to facilitate larger institutional allocations into digital assets once enacted.
Key takeaways
- SEC advances updated custody rule to the White House for review
- The proposal replaces a previously withdrawn 2023 regulatory framework
- Clearer rules could lower compliance hurdles for institutional crypto custodians