SEC Advances Updated Crypto Custody Rules to White House for Review
The U.S. SEC has sent a revised regulatory framework governing digital asset custody for investment advisers to the White House for final review.
The U.S. Securities and Exchange Commission has submitted a revamped crypto custody proposal to the White House for executive review. This draft aims to establish clearer custodial standards for registered investment advisers and investment companies handling digital assets.
The submission follows the regulator's earlier withdrawal of a controversial 2023 proposal that drew heavy industry criticism. By refining definitions and compliance pathways, the new draft seeks to create a viable legal standard for institutional market participants safeguarding digital wealth.
Institutional adoption could gain momentum if the updated rules provide clear guidance without imposing prohibitive constraints on qualified crypto custodians and institutional asset managers.
Key takeaways
- SEC submitted updated digital asset custody rules to the White House.
- The new framework replaces an earlier, heavily criticized 2023 proposal.
- Clear custody standards could accelerate institutional participation in crypto.