SEC Submits Revised Digital Asset Custody Proposal for White House Review
The SEC's updated custody rule governing registered investment advisers and digital assets has advanced to the White House for review.
The U.S. Securities and Exchange Commission has sent a revised safeguarding and custody rule proposal to the White House Office of Information and Regulatory Affairs for formal review. The refreshed framework replaces a controversial 2023 proposal and clarifies how registered investment advisers must safeguard client digital assets.
The regulatory rewrite seeks to establish clear operational standards for institutional digital asset custody without imposing outright prohibitions. By refining custody requirements, the agency aims to ensure client assets remain protected against custodian insolvency and unauthorized transfers.
Institutional investors view the regulatory progress as a step toward comprehensive regulatory clarity in the United States. A finalized rule could encourage more traditional fund managers to expand their allocations into crypto spot assets and exchange-traded products.
Key takeaways
- The SEC submitted its updated digital asset custody framework to the White House.
- The proposal clarifies safeguarding duties for registered investment advisers.
- Clearer custody rules could accelerate institutional adoption across the US fund industry.