SEC Sends Revised Crypto Custody Regulations to White House Review
The SEC's updated custody framework for digital assets has entered White House review following the retraction of earlier 2023 proposals.
The US Securities and Exchange Commission (SEC) has submitted an updated custody rule proposal to the White House for formal administrative review. The revised framework targets registered investment advisers and funds holding digital assets on behalf of clients.
This submission follows the withdrawal of a broader 2023 custody proposal that drew significant pushback from the digital asset industry. The updated guidelines aim to establish clearer compliance pathways for qualified custodians managing onchain assets without restricting institutional market access.
Clearer custody regulations may remove legal ambiguities that have restrained institutional capital from entering digital assets. Market participants anticipate that defined rules could facilitate broader integration between traditional wealth managers and regulated crypto custodians.
Key takeaways
- The SEC forwarded an updated crypto custody rule proposal to the White House.
- The measure replaces a previous 2023 draft that faced industry criticism.
- The framework targets registered fund managers and institutional custodians.