SEC Completes Crypto Agenda with Finalized Custody Rule

The Securities and Exchange Commission (SEC) has completed its agenda for the cryptocurrency space with the release of the final version of the custody rule. The rule, which was finalized in December 2022, outlines the requirements for entities to hold and safeguard digital assets. According to the SEC, the rule aims to provide clarity and guidance for investors and market participants.

The rule requires entities to have a 'qualified custodian' to hold and manage digital assets, which includes exchanges, broker-dealers, and investment advisers. The qualified custodian must be a registered bank, trust company, or other institution that is eligible to hold securities.

The SEC has stated that the rule is designed to provide a higher level of protection for investors and to ensure that digital assets are held in a safe and secure manner. The rule applies to entities that hold or manage digital assets, including Bitcoin, Ethereum, and other cryptocurrencies.

The completion of the custody rule marks the final step in the SEC's agenda for the cryptocurrency space. The SEC has taken a number of steps in recent years to regulate the industry, including the release of guidelines for initial coin offerings (ICOs) and the enforcement of anti-money laundering (AML) regulations.