SEC Digital Asset Custody Proposal Advances to White House Review
The US SEC has submitted revised digital asset custody regulations to the White House for formal review, targeting investment advisers.
The U.S. Securities and Exchange Commission (SEC) has sent a revised custody rule covering digital assets to the White House for interagency review. The updated framework specifically addresses how registered investment advisers and funds safeguard client cryptocurrencies.
This milestone follows the withdrawal of an earlier 2023 proposal that faced widespread pushback from both financial institutions and crypto advocates. The revised guidance aims to clarify compliance duties while establishing transparent operational parameters for digital asset custodians.
Clear custody standards are considered a crucial prerequisite for broader institutional involvement in crypto markets. Formalizing these rules could remove regulatory ambiguity for asset managers seeking secure digital asset exposure.
Key takeaways
- Revised SEC crypto custody rules have entered formal White House review.
- The proposal applies regulatory guidelines to registered investment advisers.
- Clearer rules could unlock greater institutional participation in digital assets.