SEC Revised Digital Asset Custody Proposal Reaches White House Review
The U.S. Securities and Exchange Commission's updated custody rule covering crypto assets for investment advisers has advanced to White House review.
The U.S. Securities and Exchange Commission has sent a revised custody regulatory proposal to the White House for interagency review. The updated framework seeks to clarify safekeeping requirements for registered investment advisers and investment funds managing digital assets, following the withdrawal of an earlier 2023 iteration.
Clear custody mandates represent a critical milestone for traditional asset managers seeking compliant ways to handle digital holdings. Previous regulatory ambiguity caused hesitation among institutional custodians, who sought specific guidelines on segregation, qualified custodian status, and risk management.
Finalizing the review process could open doors for expanded institutional participation in crypto markets. Formal rules may lower compliance barriers for institutional funds, potentially accelerating capital allocation into digital asset vehicles.
Key takeaways
- The SEC sent its updated digital asset custody framework to the White House for review.
- The revised rule clarifies qualified custodian standards for investment advisers.
- Regulatory clarity may facilitate broader institutional capital entry into digital assets.