SEC Revises Crypto Custody Framework as Proposed Rule Reaches White House
A revised SEC custody proposal clarifying digital asset safeguards for fund managers has advanced to White House review.
The U.S. Securities and Exchange Commission has submitted a revised custody framework to the White House for interagency review. The updated proposal aims to clarify digital asset safeguarding requirements for registered investment advisers and investment funds following the withdrawal of an earlier 2023 initiative.
Establishing clear custody standards has been a major hurdle for institutional crypto adoption in the United States. Regulatory ambiguity previously deterred traditional financial entities from managing client assets on-chain, while several existing platforms struggled to meet traditional qualified custodian criteria.
If approved, the new rule could formalize institutional custody protocols, paving the way for expanded asset management offerings in digital assets. Market participants anticipate that clearer guidelines will reduce legal uncertainty and encourage greater traditional capital participation.
Key takeaways
- The SEC submitted an updated crypto custody proposal to the White House for review.
- The rule intends to provide clarity for investment advisers managing digital assets.
- Final approval could unlock greater institutional participation in digital asset custody.