SEC Proposes Crypto Custody Rule Updates Amid Market Boom
The US Securities and Exchange Commission (SEC) is making moves to update regulations regarding how investment advisors and firms handle crypto assets. A new proposal submitted to the White House Office of Management and Budget on August 25 aims to clarify rules for custody.
The SEC's 'Amendments to the Custody Rules' aim to modernize existing regulations, specifically addressing uncertainties surrounding crypto asset custody. The proposal seeks to create a clearer framework for investment advisors and firms to hold crypto assets in line with existing SEC rules.
The regulation also looks to remove outdated custody requirements deemed unnecessary due to market evolution and current trading practices. Following the White House's review, the proposal will be evaluated by the SEC before being released to the public for comment.