SEC Submits Updated Crypto Custody Rules for White House Review
The SEC has forwarded a revised regulatory framework governing crypto asset custody by investment advisers for White House assessment.
The U.S. Securities and Exchange Commission has sent a revised proposal on investment adviser custody standards to the White House for interagency review. The updated package aims to clarify digital asset safekeeping obligations for registered investment advisers and funds, following the withdrawal of an earlier 2023 draft.
Regulatory clarity surrounding custody is a primary prerequisite for institutional asset managers handling digital tokens. The draft seeks to define compliant custodial arrangements, establish qualification criteria for custodians, and enhance protection against misappropriation or insolvency.
Approval of the rule could encourage conservative asset managers to expand their crypto offerings by providing enforceable legal parameters, reducing compliance uncertainty across U.S. financial institutions.
Key takeaways
- The SEC submitted an updated crypto custody proposal for White House review.
- The draft outlines clear custodial compliance standards for registered investment advisers.
- The move follows the withdrawal of a previous regulatory attempt introduced in 2023.