SEC Sends Overhauled Digital Asset Custody Rule to White House
A newly drafted SEC custody rule covering investment advisers and crypto assets has reached the White House review stage.
The United States Securities and Exchange Commission has forwarded a revised custody regulation proposal to the White House for interagency review. The updated framework establishes compliance obligations for registered investment advisers and investment funds handling digital assets.
The submission follows the regulator's decision to withdraw an earlier 2023 proposal that encountered widespread industry pushback. The updated framework is expected to clarify qualification standards for institutional custodians and provide actionable operating guidelines for registered managers holding crypto assets.
Market participants view the advancement to executive review as a constructive development toward institutional clarity. Clearer custody frameworks could lower compliance hurdles for traditional asset managers seeking exposure to digital assets.
Key takeaways
- The SEC forwarded an updated custody rule proposal for executive branch review.
- The measure replaces a withdrawn 2023 framework criticized by industry participants.
- Clearer custody guidelines may accelerate traditional institutional crypto adoption.