SEC Submits Revised Digital Asset Custody Proposal for White House Review
The SEC has forwarded a revised custody rule covering investment advisers and crypto assets to the White House for formal evaluation.
The U.S. Securities and Exchange Commission has sent a revised custody rulemaking package to the White House for review. The initiative follows the withdrawal of an earlier 2023 proposal and aims to modernize safeguarding standards for registered investment advisers and investment funds handling digital assets.
The updated framework seeks to clarify how institutional money managers must secure digital assets with qualified custodians. Clearer custody definitions have long been requested by traditional asset managers looking to expand their exposure to spot crypto markets without breaching regulatory compliance rules.
If enacted, the revised guidelines could lower operational barriers for institutional custodians, trust banks, and crypto-native infrastructure providers. Market participants expect the rules to provide much-needed clarity for institutional capital entering the digital asset ecosystem.
Key takeaways
- The SEC submitted an updated custody rule proposal to the White House.
- The framework clarifies qualified custody requirements for digital asset managers.
- Clearer standards could spur broader institutional participation in spot crypto markets.