SEC Crypto Custody Rules Head to White House
SEC sends crypto custody rule overhaul to White House for review, potentially reshaping how investment firms manage digital assets.
The update
The Securities and Exchange Commission has sent a proposal to the White House to modernize crypto custody rules. The rule change aims to “clarify the framework for the custody of crypto assets” for investment advisers and companies. The proposal was sent to the Office of Information and Regulatory Affairs for review before it can return to the SEC for potential public comment.
Why it matters
This regulatory shift represents a move away from the SEC’s previous “regulation through enforcement” approach. The proposed changes could provide clearer guidelines for how investment firms can hold and manage digital assets for clients while complying with federal securities rules. This comes as the CLARITY Act, a legislative effort to establish clearer crypto market structure rules, remains stalled in Congress.
What to watch
Monitor whether the White House requests changes to the proposal before it returns to the SEC. Watch for the SEC’s vote on whether to release the rule for public comment. The timeline for final implementation remains unclear. Industry reaction to the proposed changes will be important to assess potential adoption challenges or opportunities.
Sources
- bitcoinmagazine.com — Initial reporting on SEC sending proposal to White House
- cointelegraph.com — Details on regulatory review process and context