SEC Submits Revised Crypto Custody Rule for White House Review
The SEC has sent its updated digital asset custody framework to the White House, seeking to clarify requirements for advisers and funds.
The US Securities and Exchange Commission has advanced its revised digital asset custody rules to the White House for formal review. The proposal establishes updated safeguarding standards for investment advisers and registered investment vehicles holding cryptocurrencies.
This regulatory update follows the withdrawal of an earlier 2023 proposal that had drawn heavy criticism from industry participants. The new draft aims to provide clearer definitions and operational parameters for qualified institutional custodians handling digital assets.
Final approval could streamline institutional adoption by establishing clear regulatory pathways for crypto custody, reducing compliance ambiguity for asset managers looking to allocate client funds to digital markets.
Key takeaways
- SEC sends updated crypto custody rule proposal to the White House.
- The framework targets safeguarding rules for investment advisers and funds.
- Clearer rules aim to resolve institutional custody compliance concerns.