SEC Advances Revised Digital Asset Custody Framework to White House
A newly revised crypto custody proposal from the SEC has entered White House review, aiming to establish clear compliance rules for asset managers.
The U.S. Securities and Exchange Commission has sent a revised digital asset custody rulemaking package to the White House for interagency review. The updated framework is tailored for registered investment advisers and investment funds navigating the safekeeping of digital assets.
This administrative step follows the withdrawal of an earlier, highly contested 2023 proposal that faced pushback over overly restrictive compliance demands. By refining the criteria, the agency seeks to provide clearer guidelines for qualified custodians while maintaining institutional investor protections.
Clearer custody definitions could unlock significant capital inflows from institutional funds that have remained cautious due to legal ambiguity. Regulated institutional custodians are poised to benefit directly from finalized federal compliance standards.
Key takeaways
- The SEC submitted its revamped crypto custody regulation for White House review.
- The proposal replaces a previous 2023 version that was subsequently withdrawn.
- Finalized guidelines could provide much-needed regulatory clarity for institutional asset managers.