SEC Proposes Framework for Cryptocurrency Custody

The US Securities and Exchange Commission (SEC) has proposed a new framework for the custody of cryptocurrency assets, as per SEC Chairman Paul Atkins. The move aims to fill the regulatory gap in the industry by providing a clear framework for custodians to hold these assets. According to Atkins, the existing rules under the Investment Advisers Act of 1940 and the Investment Company Act of 1940 are outdated and primarily focus on traditional assets.

The proposal is part of the SEC's broader regulatory plan for cryptocurrency assets, which also includes a number of other initiatives such as stopping enforcement actions in favor of regulation, issuing no-action letters for tokenized securities, and publishing guidance on the classification of tokens. Atkins stated that more regulations are expected to be proposed in the future.