SEC Digital Asset Custody Proposal Reaches White House Review Stage
A revised SEC rule aimed at clarifying cryptocurrency custody requirements for registered advisers and funds is now undergoing White House review.
The U.S. Securities and Exchange Commission has submitted a revised custody rule framework to the White House for interagency review. The updated proposal seeks to clarify safekeeping standards for investment advisers and registered investment companies managing digital assets, replacing a withdrawn 2023 initiative.
Custody rules have long been a friction point between regulators and institutional asset managers handling cryptocurrencies. By formalizing clear compliance obligations, the updated guidelines aim to establish standardized operational controls while protecting client funds against operational risks.
Approval of clearer custody guidelines could lower barriers for institutional capital entering the digital asset sector. Regulated institutions and custodial banks stand to gain greater legal certainty, potentially accelerating fund launches and tokenized investment products.
Key takeaways
- SEC's updated custody rule framework is now under White House review.
- The rule provides clearer guidelines for advisers and investment funds.
- Regulatory clarity may facilitate broader institutional crypto adoption.