US SEC Digital Asset Custody Proposal Undergoes White House Review
The SEC has submitted an updated regulatory framework governing crypto asset custody by investment advisers for White House assessment.
The United States Securities and Exchange Commission has sent a revised proposal on investment adviser custody standards for digital assets to the White House for formal administrative review. This updated submission follows the withdrawal of a previous 2023 regulatory draft.
The pending rule is designed to clarify how registered investment advisers and funds can hold digital assets securely while meeting institutional compliance obligations. It aims to establish concrete operational boundaries for qualified custodians managing client cryptocurrency.
Regulatory clarity from federal agencies may remove institutional barriers, allowing traditional asset managers and registered funds to safely expand their digital asset investment offerings.
Key takeaways
- The SEC forwarded an updated crypto custody rule proposal to the White House.
- The revised framework targets registered investment advisers and fund managers.
- Clear institutional custody rules could encourage broader institutional asset allocation.