SEC Proposes Custody Rule Overhaul for Crypto-Holding Institutions
The U.S. Securities and Exchange Commission (SEC) has submitted proposed changes to custody rules governing how investment advisers and companies hold client assets, including crypto.
The SEC's 'Amendments to the Custody Rules' were sent to the White House Office of Information and Regulatory Affairs (OIRA) on August 25 for review under federal procedures.
The proposal aims to reduce uncertainty for institutions trying to comply with existing securities rules while holding digital assets, particularly crypto. The changes are expected to clarify how companies can hold client assets in custody arrangements, an area where market participants have long sought clearer guidance.
The SEC emphasized that the proposal is designed to address uncertainty and has not yet published the rule text for public scrutiny.