SEC Proposes Crypto Custody Framework Amid Clarity Act Delays

The Securities and Exchange Commission (SEC) has sent a proposal to the White House aimed at clarifying the framework for crypto asset custody. The regulator wants to improve and modernize the regulations surrounding custody in the crypto space, which has been a topic of discussion for some time.

According to the proposal, the rule change would clarify the framework for the custody of crypto assets for investment advisers and companies, making other modernizations needed to remove burdens from outdated provisions. This comes after a vote was delayed on the Clarity Act, but regulators like the SEC and Commodity Futures Trading Commission (CFTC) have said they will proceed with shaping crypto policy.

Pro-crypto lawmakers had hoped to pass the Clarity Act before Congress broke for August recess, but it slipped to September. Some Republican senators accused Democrats of deliberately holding back the vote. Despite this, regulators want to press ahead, with CFTC Chairman Michael Selig saying he will proceed with rulemaking whether or not the Clarity Act is enacted.