SEC Submits Revised Crypto Custody Framework for White House Review
The SEC has sent updated custody rules for digital assets to the White House for final review, replacing an earlier 2023 proposal.
The U.S. Securities and Exchange Commission has forwarded a revised custody rule package covering digital assets to the White House for interagency review. The updated framework aims to clarify regulatory requirements for investment advisers and registered investment firms managing crypto assets.
The submission follows the withdrawal of a contentious 2023 proposal that faced pushback from both industry participants and legal experts. Regulators are seeking to establish clearer standards for qualified custodians handling digital tokens on behalf of institutional clients.
If approved, the new rule could provide much-needed regulatory certainty for institutional asset managers looking to expand their digital asset offerings. Clearer compliance parameters may also reduce friction for institutional custody providers operating in the U.S. market.
Key takeaways
- The SEC submitted a revised digital asset custody rule to the White House for review.
- The framework clarifies safeguarding requirements for registered investment advisers.
- The updated guidelines replace a previously withdrawn 2023 regulatory proposal.