Revised SEC Crypto Custody Rule Reaches White House Review Stage
A revamped SEC crypto custody proposal covering registered advisers and investment funds has entered formal review at the White House.
The U.S. Securities and Exchange Commission has submitted a revised digital asset custody framework to the White House for formal review. The planned regulation aims to set clear custodial guidelines for registered investment advisers and investment companies managing cryptocurrencies.
This updated rule follows the withdrawal of a controversial 2023 proposal that faced pushback over overly restrictive compliance demands. By refining the standards, regulators seek to establish a legally sound mechanism for institutional managers to safeguard client tokens without facing ambiguous enforcement actions.
Clearer custody guidelines could remove a significant roadblock preventing traditional institutional capital from entering digital asset markets. A standardized framework is expected to boost institutional confidence, enhance asset protection, and pave the way for broader asset manager participation.
Key takeaways
- SEC submits updated digital asset custody rules for White House review.
- The framework sets compliance standards for investment advisers and funds.
- The move aims to replace previously withdrawn 2023 regulatory proposals.