SEC Moves to Revamp Crypto Custody Rules Amid Congressional Delay

The US Securities and Exchange Commission (SEC) has submitted a proposal to revise custody rules for investment advisers, including those handling digital assets. The 'Amendments to the Custody Rules' aim to provide clearer guidance on safeguarding client crypto holdings.

The SEC's move comes as Congress stalls on passing the CLARITY Act, a broader crypto market-structure bill now set for a September 15 Senate vote. Despite this delay, regulatory agencies continue to pursue rulemaking efforts under existing authority.

CFTC Chairman Michael Selig has stated that his agency will press ahead with its own rulemaking, even if Congress doesn't pass the CLARITY Act. The SEC claims their proposal would 'clarify the framework for the custody of crypto assets' while maintaining investor protections and reducing regulatory burdens.