SEC Sends Revised Crypto Custody Framework to White House for Review
The SEC's updated digital asset custody rules for investment advisers and funds have entered the White House review stage.
The U.S. Securities and Exchange Commission has submitted a revised digital asset custody proposal to the White House for final review. The updated framework establishes clear operational guidelines for registered investment advisers and investment funds handling digital assets, following the withdrawal of an earlier 2023 proposal.
Institutional participation in digital assets has long been constrained by regulatory ambiguity regarding qualified custodians. By formalizing requirements, the commission aims to create enforceable standards for safekeeping client tokens while establishing accountability for asset managers.
A finalized custody framework could clear the path for broader institutional engagement and fund launches, reducing regulatory risk for traditional financial firms operating in the digital asset space.
Key takeaways
- The SEC forwarded a revamped crypto custody proposal to the White House.
- The rules govern custody practices for investment advisers and fund managers.
- The framework replaces an earlier withdrawn draft to clarify compliance rules.