US SEC Moves Revised Crypto Custody Regulations to White House Review
The SEC's overhauled digital asset custody framework has entered the White House review stage for investment advisers and funds.
The US Securities and Exchange Commission has sent a revised crypto custody rule to the White House for interagency review. The proposal establishes regulatory standards for registered investment advisers and funds that safeguard digital assets.
The submission follows the withdrawal of an earlier 2023 proposal, signaling an effort by regulators to clarify institutional compliance responsibilities. The updated framework seeks to define how investment entities must hold digital tokens while meeting fiduciary and safekeeping obligations.
Clearer custody rules could reduce regulatory friction for institutional capital entering the digital asset sector. A finalized rule may encourage more traditional asset managers and institutional custodians to launch or expand their crypto-related investment products.
Key takeaways
- The SEC submitted an updated crypto custody proposal for White House review.
- The rule establishes safekeeping requirements for registered advisers and funds.
- Institutional adoption may benefit from finalized, predictable custody guidelines.