White House Reviews SEC Proposal on Crypto Custody Guidelines
The SEC's updated custody framework for digital assets has advanced to the White House for formal administrative review.
The US Securities and Exchange Commission's revised crypto custody proposal has entered the formal review stage at the White House. The updated regulation aims to establish clear custody standards for registered investment advisers and funds holding digital assets.
This administrative step follows the withdrawal of an earlier 2023 proposal, reflecting ongoing efforts to refine compliance mandates for institutional market participants. The rule intends to resolve long-standing ambiguities regarding how qualified custodians manage private keys and on-chain holdings.
Institutional investors view regulatory clarity on custody as a prerequisite for larger capital deployments. If finalized, the framework could standardize asset protection practices across institutional crypto trading desks and fund managers.
Key takeaways
- The SEC's revised crypto custody rule is now under White House review.
- The framework targets registered investment advisers and investment companies managing crypto.
- The update follows the withdrawal of a prior, more restrictive 2023 proposal.