SEC Submits Revised Digital Asset Custody Framework for White House Review
The US SEC has forwarded an updated custody rule targeting investment advisers and fund managers to the White House for evaluation.
The US Securities and Exchange Commission has sent a revised safeguarding rule to the White House's Office of Information and Regulatory Affairs for interagency review. The updated framework addresses custody requirements for registered investment advisers and investment companies managing digital assets.
The revised proposal follows the withdrawal of a controversial 2023 draft that had drawn sharp criticism from financial institutions and crypto firms over stringent requirements. The new rule aims to provide clearer operational guidelines on how qualified custodians must secure crypto holdings.
Clearer custody rules could ease regulatory uncertainty for institutional investors, potentially opening the door for broader institutional participation and compliant digital asset management services.
Key takeaways
- The SEC's updated custody rule has moved to White House review.
- The framework clarifies digital asset safeguarding for investment advisers.
- The measure replaces a heavily criticized 2023 regulatory draft.