US SEC Crypto Custody Proposal Advances to White House Review
A revised SEC custody framework for digital assets has moved to the White House for final review following prior regulatory withdrawals.
The US Securities and Exchange Commission has sent a revised custody framework covering investment advisers and institutional asset management to the White House for review. The initiative comes after the agency retracted an earlier 2023 proposal on digital asset custody.
The updated guidelines seek to provide clear standards for how registered investment advisers must safe-keep digital assets. Regulatory ambiguity around qualified custody has historically deterred traditional institutional capital from engaging directly with spot crypto holdings.
Approval of modernized custody rules would pave the way for accelerated institutional participation. Regulated custodians and institutional-grade DeFi services are likely to see heightened demand as compliance pathways become transparent.
Key takeaways
- The SEC forwarded an updated crypto custody rule for White House review.
- The regulation focuses on investment advisers and registered entities.
- Clear custody guidelines could boost institutional digital asset adoption.