SEC resurrecting U.S. crypto custody rule the previous administration failed to land
The U.S. Securities and Exchange Commission is revisiting regulations regarding how investment advisers safeguard crypto assets. The agency aims to modernize custody rules, though previous attempts faced significant pushback from the crypto industry over strict qualified custodian requirements.
Why it matters
Clearer custody rules are essential for institutional adoption of digital assets, but the SEC's approach remains a point of contention for crypto firms.
But the agency is giving the regulation of crypto safeguarding another shot , hoping to answer the industry's urgent questions about how to comply with the existing custody regulations for crypto assets. The SEC took the very preliminary step of sending the concept this week to the White House Office of Budget and Management, where it'll sit for a while under review before the agency can move forward to actually propose it.
The SEC said that its future effort "would improve and modernize the regulations around custody of investment adviser client assets and fund assets, including to address crypto assets," according to its current description on the agency's public regulatory agenda.
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