SEC Proposes Crypto Custody Rule Rewrite Amid Clarity Act Stalemate

The US Securities and Exchange Commission (SEC) has sent a proposal to the White House's Office of Information and Regulatory Affairs (OIRA) to rewrite rules for crypto custody by investment advisers and funds. The proposal, called 'Amendments to the Custody Rules,' aims to clarify the framework for holding digital assets.

The SEC claims that current provisions are outdated and no longer serve investor protection. The agency says that advisors have been asking how they can legally hold clients' cryptoassets under existing rules.

The proposal is expected to affect both the Investment Advisers Act and the Investment Company Act, which regulate how clients' assets are held.