SEC Crypto Custody Regulation Rules Enter White House Review Stage
The U.S. SEC has submitted revised safeguarding and custody rules covering digital asset managers to the White House for final review.
The U.S. Securities and Exchange Commission has sent a revised custody framework to the White House for executive review, clarifying operational standards for investment advisers and asset managers holding digital assets.
The updated proposal follows the withdrawal of an earlier 2023 draft, seeking to create workable regulatory standards for institutional custodians handling cryptocurrencies without forcing outright operational halts.
Clearer custody definitions could significantly lower institutional barriers to entry, enabling traditional fund managers to expand compliant digital asset portfolios with reduced regulatory ambiguity.
Key takeaways
- SEC submits rewritten digital asset custody framework to the White House.
- The proposal replaces a previously withdrawn 2023 safeguarding initiative.
- Clearer guidelines could streamline institutional crypto onboarding.