Revised SEC Custody Framework for Digital Assets Reaches White House Review
The SEC has submitted its updated custody rule covering digital assets for review by the White House after withdrawing an earlier proposal.
The U.S. Securities and Exchange Commission has sent a revised custody rulemaking proposal affecting investment advisers and investment firms to the White House for review. The new framework follows the retraction of a contentious 2023 proposal.
Regulatory clarity around registered digital asset custody remains a primary bottleneck for institutional asset managers looking to expand crypto offerings. A finalized rule could establish formal standards for qualified custodians holding digital tokens on behalf of regulated funds.
Greater regulatory certainty could encourage institutional participation and lower compliance risks for traditional custodians and exchange-traded product issuers operating in U.S. markets.
Key takeaways
- The SEC submitted its updated digital asset custody proposal for White House review.
- The framework aims to clarify custodial obligations for registered investment advisers.
- Clearer standards could lower institutional barriers to managing crypto products.