White House Reviews SEC Updated Digital Asset Custody Regulations
The White House is reviewing a revised SEC proposal governing crypto custody requirements for registered investment advisers and funds.
The US Securities and Exchange Commission has forwarded a revised digital asset custody framework to the White House for formal review. The refreshed draft aims to clarify safeguarding obligations for registered investment advisers and investment companies handling crypto assets.
The new submission follows the withdrawal of a contentious 2023 proposal that drew widespread industry criticism regarding institutional custody practicality. This revised version seeks to establish clearer standards for qualified custodians operating in the digital asset space.
Regulatory clarity from federal authorities could lower institutional barriers to entry, enabling traditional asset managers to expand crypto product offerings. However, stringent compliance requirements may raise operational costs for specialized institutional custodians.
Key takeaways
- The SEC sent an updated crypto custody rule proposal to the White House.
- The draft clarifies safeguarding duties for investment advisers and funds.
- The measure replaces a withdrawn 2023 proposal criticized by the industry.