US SEC Digital Asset Custody Proposal Advances to White House Review
The SEC's revised digital asset custody framework has moved to the White House for final interagency evaluation.
The U.S. Securities and Exchange Commission (SEC) has submitted its revised custody framework for digital assets to the White House for formal review. The updated rule seeks to establish clearer standards for investment advisers and registered entities holding client crypto assets.
This administrative advancement follows the withdrawal of an earlier 2023 proposal, indicating a refined regulatory strategy regarding qualified custodians. The upcoming framework is expected to clarify institutional compliance obligations and address long-standing friction between traditional financial standards and blockchain-based asset management.
Market participants anticipate that clearer federal custody standards will reduce institutional friction, potentially paving the way for wider traditional finance participation in digital asset custody and fund administration.
Key takeaways
- The SEC's revised crypto custody proposal is under White House review.
- The rules aim to clarify safeguarding requirements for advisers and funds.
- Standardized guidance could boost institutional adoption of digital asset custody.