SEC Submits Revised Crypto Custody Regulations for White House Review
The US SEC has advanced an updated digital asset custody framework covering fund managers and advisers for White House assessment.
The US Securities and Exchange Commission has sent a revised draft of its digital asset custody rule to the White House for interagency review. The updated proposal outlines specific safeguarding standards for registered investment advisers and investment funds handling digital assets.
This development follows the regulator's decision to withdraw an earlier 2023 proposal after significant pushback from both institutional custodians and lawmakers. Clear federal custody rules are essential for institutional capital, which requires regulatory certainty before deploying funds at scale into digital assets.
If approved and formally enacted, the clearer guidelines could streamline institutional on-ramps, potentially encouraging more traditional asset managers and financial institutions to launch regulated crypto investment products.
Key takeaways
- SEC advanced its revised crypto custody proposal to the White House.
- The framework targets registered investment advisers and investment firms.
- Clear rules could lower compliance hurdles for institutional crypto adoption.