US SEC Advances Revised Digital Asset Custody Proposal to White House
The US SEC has submitted an updated custody framework governing investment advisers and digital assets for White House review.
The US Securities and Exchange Commission has sent a revised custody regulatory proposal to the White House for interagency review. The measure aims to establish defined rules for investment advisers and registered funds holding crypto assets.
The development follows the withdrawal of an earlier 2023 proposal, signaling an effort to modernize custodial standards. The rule clarifies how institutional managers must protect digital assets to satisfy fiduciary obligations.
Clearer federal custody standards may ease institutional barriers to entry, providing traditional asset managers with defined legal pathways to custody and manage crypto portfolios.
Key takeaways
- SEC submits revamped crypto custody rule for executive review.
- Framework replaces a previously withdrawn 2023 proposal.
- Clearer institutional custody rules could boost fund adoption.