SEC Revises Crypto Custody Guidelines as Proposal Moves to White House
The SEC's updated digital asset custody framework has reached White House review to clarify rules for investment advisers and funds.
The U.S. Securities and Exchange Commission has sent a revised crypto custody rule proposal to the White House for final review. The updated framework follows the withdrawal of an earlier 2023 proposal and aims to clarify regulatory requirements for investment advisers and registered funds managing digital assets.
The rule seeks to establish clear standards for qualified custodians handling cryptocurrencies, addressing long-standing compliance ambiguities. Institutional market participants have argued that past proposals placed overly restrictive burdens on traditional banks and specialized digital custodians.
Clearer custody rules could accelerate institutional participation by lowering compliance risks for major asset managers. Market observers expect the finalized guidelines to shape the operational landscape for institutional crypto products and exchange-traded funds.
Key takeaways
- The SEC forwarded an updated crypto custody proposal to the White House for review.
- The measure aims to set clear safeguarding standards for fund managers and advisers.
- Regulatory clarity may ease institutional onboarding and reduce compliance uncertainty.