SEC Advances Digital Asset Custody Regulations
The US Securities and Exchange Commission (SEC) is moving forward with regulations for the custody of digital assets, according to Taylor Lindman, chief legal advisor to the SEC's crypto working group.
Lindman stated that a proposal has been submitted to the White House Office of Management and Budget (OMB) for review, which would allow investment companies and broker-dealers to hold non-security classified cryptocurrencies without special registration.
The proposed rule aims to clarify how market participants can hold digital assets in a broker-dealer environment, as well as allowing investment advisors to store client assets in state-licensed trusts, such as qualified custodians.
Lindman described the SEC's recent work as 'laying the foundation', including previous proposals for allowing cryptocurrency issuances and tokenized securities exemptions. He emphasized that the SEC is striving to enable existing securities intermediaries and market participants to use blockchain technology with confidence.