SEC Crypto Custody Rule Proposal Advances to White House Review
The U.S. Securities and Exchange Commission has submitted its revised digital asset custody framework to the White House for formal review.
The U.S. Securities and Exchange Commission (SEC) has submitted a revised proposal regarding cryptocurrency custody standards to the White House for executive review. The updated framework aims to clarify safeguarding requirements for registered investment advisers and investment companies holding digital assets on behalf of clients.
This submission follows the withdrawal of an earlier 2023 proposal that faced significant pushback from financial institutions and crypto industry participants. By advancing a reworked set of guidelines, federal regulators seek to establish clearer compliance expectations for institutional asset managers navigating digital asset custody.
If approved, the final rules could lower legal uncertainty for institutional investors entering crypto markets. Clearer custody definitions are widely expected to facilitate broader institutional participation and streamline the operations of regulated crypto custodians.
Key takeaways
- The SEC sent its revised crypto custody regulatory framework to the White House for review.
- The updated rules target registered investment advisers and institutional fund managers.
- Clear custody standards could reduce legal uncertainty and bolster institutional adoption.