SEC Sends Revised Crypto Custody Regulations for White House Assessment
The SEC's revised framework for digital asset custody by registered investment advisers has advanced to formal White House review.
The U.S. Securities and Exchange Commission has forwarded an updated custody rule proposal affecting registered investment advisers and funds to the White House for review. The initiative follows the withdrawal of an earlier 2023 proposal.
The drafted rules aim to establish explicit standards for how institutional investment managers handle and safeguard digital assets. Clarifying custody parameters remains a vital prerequisite for expanding institutional capital allocation into regulated crypto vehicles.
Regulatory clarity surrounding qualified custodians is anticipated to reduce compliance uncertainty for traditional asset managers operating institutional digital asset products.
Key takeaways
- The SEC forwarded an updated crypto custody proposal to the White House.
- The framework targets registered investment advisers and institutional fund managers.
- Formal custody rules could streamline institutional adoption of digital assets.