SEC Revised Crypto Custody Framework Advances to White House Review
The U.S. SEC has submitted an updated digital asset custody proposal for investment advisers to the White House for formal review.
The U.S. Securities and Exchange Commission has sent a revised custody rulemaking package to the White House for interagency review. The proposal establishes updated safeguarding rules for investment advisers and registered investment companies managing digital assets.
The move follows the withdrawal of a controversial 2023 custody proposal that drew substantial pushback from institutional custodians. Clarifying qualified custody standards is essential for traditional financial firms looking to expand digital asset management services.
A finalized custody framework could remove lingering regulatory ambiguity for institutional allocators, potentially streamlining compliance and encouraging larger asset managers to launch direct crypto investment products.
Key takeaways
- SEC submits revised crypto custody rules to the White House.
- The proposal covers registered advisers and investment entities.
- Regulatory clarity may facilitate deeper institutional participation.