SEC Crypto Custody Framework Moves to White House for Final Review
The SEC's revised digital asset custody rule has entered White House review, aiming to establish clear compliance guidelines for institutional investment advisers.
The U.S. Securities and Exchange Commission has sent its revised digital asset custody proposal to the White House for formal review. The updated framework is designed to govern investment advisers and asset managers holding cryptocurrencies on behalf of clients.
This regulatory milestone follows the withdrawal of a contentious 2023 proposal that faced significant pushback from institutional participants. Clearer rules are expected to define qualified custodians and reduce operational ambiguity for regulated funds expanding into digital assets.
Institutional adoption could accelerate if the finalized framework provides a workable legal pathway for banks and trust companies. Clarified custody mandates will likely reduce counterparty risks across registered crypto investment vehicles.
Key takeaways
- The SEC advances its revised digital asset custody rules to the White House.
- The framework sets specific standards for investment advisers handling client crypto.
- Clearer custody rules could reduce friction for institutional fund managers.