SEC Proposes Clear Crypto Custody Rules for Institutional Investors
The US Securities and Exchange Commission (SEC) has proposed new rules to clarify the custody of cryptocurrency assets for institutional investors. According to SEC Chairman Paul Atkins, the proposal will provide a 'clear regulatory framework' for the custody of digital assets, giving investment advisers and funds a compliant pathway where none existed before.
The current regulations, which were crafted in a bygone era, have not kept pace with the growth of the crypto sector, which has grown to a multi-trillion-dollar asset class since Bitcoin's invention in 2008. The proposed rules will allow investment funds to hold cryptocurrency in self-custody under certain conditions.
Analysts believe that this move will further unlock institutional adoption of cryptocurrency. 'For years, old rules built for stocks and bonds left firms with no compliant path to hold Bitcoin and other crypto for clients,' said Dan Gambardello. 'Today's proposal opens that door.'