SEC Proposes New Cryptocurrency Custody Rules for Investment Firms

The U.S. Securities and Exchange Commission (SEC) has proposed new rules to clarify how investment advisors and regulated funds can hold cryptocurrency assets.

According to SEC Chairman Paul Atkins, the current regulations are insufficient to meet the needs of the rapidly growing cryptocurrency market.

The proposal aims to eliminate ambiguities in existing regulations by providing a clear and compliant approach to holding crypto assets.

The new rules will permit investment firms to hold crypto assets in their own custody under certain conditions and allow state-authorized trust companies to be used as custodians.