SEC Submits Revised Digital Asset Custody Rules for White House Review
The US SEC has submitted an updated regulatory proposal governing crypto custody for registered investment advisers to the White House.
The US Securities and Exchange Commission has sent a revised custody rulemaking proposal to the White House for review. The initiative aims to modernize standards for registered investment advisers and investment companies holding digital assets.
The submission follows the withdrawal of a previous 2023 proposal that met strong pushback from industry participants, custodians, and legal experts. The updated regulatory framework seeks to clarify specific compliance requirements for qualified custodians handling digital assets while ensuring institutional investor protections remain intact.
Clearer custody guidelines could remove a significant barrier for institutional asset managers looking to expand their exposure to cryptocurrencies without facing regulatory ambiguity or operational compliance penalties.
Key takeaways
- Revised SEC crypto custody framework reaches White House review stage.
- The updated proposal follows the withdrawal of a 2023 regulatory draft.
- Institutional investment advisers could gain clearer compliance standards.