SEC Proposes Overhaul of Custody Rules for Crypto Assets
The US Securities and Exchange Commission (SEC) is taking steps to revamp custody rules for investment advisers and companies, aiming to provide greater clarity on holding crypto assets for clients while complying with federal securities regulations.
The proposed rule was submitted to the White House Office of Management and Budget's Office of Information and Regulatory Affairs (OIRA) for review on August 25. The SEC is considering changes under the Investment Advisers Act and Investment Company Act, focusing on how investment advisers and funds hold client assets, including crypto.
The proposed overhaul aims to clear up uncertainty around holding crypto assets for clients while staying within the SEC's rules. This shift from enforcement actions towards rulemaking reflects the agency's new approach under Chair Paul Atkins, who vowed to end 'regulation through enforcement' in favor of formal policymaking.