SEC Proposes New Rules to Modernize Crypto Custody Regulations
The US Securities and Exchange Commission (SEC) has proposed new rules to modernize crypto custody regulations. This move comes despite the stalled Crypto Clarity Act, which aims to bring more regulatory clarity and investor protection for the cryptocurrency sector.
In a rule change sent on August 26, 2026, the regulator said it wanted to 'improve and modernize the regulations' surrounding custody for the crypto space. The new proposal would clarify the framework for the custody of crypto assets for investment advisers and companies, making other necessary modernizations to remove outdated provisions.
The SEC's proposed framework is narrower than the larger CLARITY Act. Despite this, both developments are seen as welcome moves in the industry.