SEC Submits Revised Digital Asset Custody Rules for White House Review
The US SEC has sent an updated custody rule proposal covering investment advisers and crypto assets to the White House for review.
The U.S. Securities and Exchange Commission has advanced a rewritten custody regulatory framework to the White House for interagency review. The updated package aims to clarify digital asset safeguarding requirements for registered investment advisers and investment companies, replacing an earlier proposed rule withdrawn in 2023.
Institutional participation in digital assets heavily relies on clear custody rules and qualified custodian designations. By revising its previous stance, the SEC seeks to establish actionable standards for asset managers holding crypto on behalf of institutional clients without creating unworkable compliance hurdles.
Finalizing these custody standards could clear regulatory ambiguity for institutional allocators, potentially opening pathways for broader fund integration and custody infrastructure expansion across the U.S. market.
Key takeaways
- The SEC submitted a rewritten digital asset custody framework to the White House.
- The revised rule applies to registered investment advisers and investment companies.
- The update replaces a contentious custody proposal that was withdrawn in 2023.