SEC Nears Approval of New Crypto Custody Rules

The U.S. Securities and Exchange Commission (SEC) is making progress on new crypto custody rules, which are part of its broader effort to establish a framework for digital assets in the country's securities market.

The proposed rules have been sent to the White House Office of Management and Budget for review, and once approved, they will provide clearer guidance on how traditional financial firms can hold both crypto securities and non-security digital assets.

Taylor Lindman, chief counsel of the SEC's Crypto Task Force, emphasized that the agency wants broker-dealers to understand how they can custody non-security crypto assets without requiring special registration. Investment advisers will also receive clearer guidance on where client digital assets can be held, including state-chartered trust companies.

The new framework aims to integrate blockchain and cryptocurrency into the existing U.S. securities market infrastructure, allowing established intermediaries to hold and transact in digital assets under clearer regulatory standards.