SEC Prepares Major Overhaul of Crypto Custody Rules for Investment Firms

The US Securities and Exchange Commission (SEC) is proposing an overhaul of rules for investment firms holding digital assets. On August 25, a new proposal was sent to the White House's Office of Management and Budget.

The proposed changes aim to update existing regulations to better accommodate the growing demand for digital asset custody services among investors. Investment advisers would be required to meet specific standards when storing clients' cryptocurrency holdings.

The move is seen as a significant step towards providing clearer guidelines for investment firms operating in the crypto space. However, no further details were provided by the SEC regarding the specifics of the proposed changes or their expected impact on the industry.