US SEC Revised Crypto Custody Rule Moves to White House Review
The SEC's overhauled digital asset custody framework has entered White House review following the retraction of earlier proposals.
The US Securities and Exchange Commission (SEC) has submitted its revised digital asset custody rules to the White House for interagency review. The updated framework aims to clarify how registered investment advisers and funds can hold cryptocurrency and related digital assets safely.
This regulatory update follows the withdrawal of a controversial 2023 proposal that faced significant pushback regarding qualified custodian mandates. The revised language seeks to establish clearer standards for institutional compliance without completely cutting off crypto-native custodians from institutional capital flows.
The progression to White House review is a critical milestone toward final implementation. Regulatory clarity around digital asset custody is expected to encourage institutional participation by removing operational ambiguities for asset managers and custody service providers.
Key takeaways
- The SEC forwarded an updated crypto custody proposal to the White House for official review.
- The new framework addresses regulatory compliance for registered investment advisers holding digital assets.
- Clearer custody guidelines could accelerate institutional adoption across the digital asset space.