SEC Digital Asset Custody Proposal Advances to White House Review
The U.S. Securities and Exchange Commission has submitted a revised digital asset custody framework to the White House for formal regulatory review.
The U.S. Securities and Exchange Commission has sent a revised custody rulemaking package to the White House for interagency review. The updated framework specifically covers investment advisers and registered investment companies, offering standardized guidelines for holding digital assets securely.
This submission follows the withdrawal of an earlier, highly contested 2023 proposal that faced widespread pushback from crypto custodians and traditional financial institutions. The revised draft seeks to establish clearer compliance pathways while addressing persistent institutional ambiguities regarding qualified custodianship for cryptographic assets.
If finalized, the regulation could provide long-awaited legal clarity for asset managers seeking direct digital asset exposure. Clearer custody rules may also encourage broader participation from institutional custodial banks, lowering entry barriers for regulated investment products.
Key takeaways
- The SEC sent an updated digital asset custody framework to the White House for review.
- The rule replaces a withdrawn 2023 proposal to clarify standards for registered investment advisers.
- Clearer qualified custody guidelines could accelerate institutional adoption of digital assets.