SEC Proposes Clear Rules for Crypto Custody

The Securities and Exchange Commission (SEC) has proposed new rules for the custody of cryptocurrency assets. The proposed framework aims to create clear guidelines under the Investment Company Act of 1940 and the Investment Advisers Act of 1940 for registered investment advisers and regulated funds to hold and manage crypto assets.

The proposals also include amendments to record-keeping and disclosure requirements, which are expected to provide greater transparency and accountability for crypto custodians. The SEC has hinted that more regulatory proposals for digital assets are on the horizon, but no specific timeline has been provided.

The proposed rules are intended to address concerns around the safekeeping and management of crypto assets, which have been a subject of debate in the industry. While some experts have welcomed the move, others have expressed concerns that the proposed rules may stifle innovation and limit the growth of the crypto market.

The SEC's proposal is now open for public comment, and stakeholders are invited to provide feedback on the proposed rules. The final version of the rules is expected to be published in the coming months.