US SEC Submits Revised Crypto Custody Rule to White House for Review
The US SEC has sent an updated custody framework for digital assets to the White House for interagency review following previous regulatory revisions.
The US Securities and Exchange Commission (SEC) has submitted a revised safeguarding rule to the White House for review. The proposal aims to modernize custody requirements for registered investment advisers and funds holding digital assets.
This development follows the withdrawal of a broader 2023 proposal that drew heavy industry criticism over its strict qualification standards for crypto custodians. The updated framework seeks to clarify compliance requirements and ensure investor protections without stifling institutional asset management.
Advancing this draft rule signals a renewed attempt to provide clear operational guidelines for institutional crypto custody, potentially easing regulatory uncertainty for traditional funds entering the digital asset sector.
Key takeaways
- The SEC submitted an updated crypto custody framework for White House review.
- The rule revises previous proposals to clarify standards for registered investment advisers.
- Clearer custody rules could accelerate institutional adoption of digital assets.