SEC Proposes Stricter Crypto Custody Rules for Advisers and Funds

The Securities and Exchange Commission (SEC) has proposed new rules for crypto custody by investment advisers and funds.

The proposal, which was published in the Federal Register on March 2nd, aims to provide clearer guidance on the requirements for holding and managing digital assets.

The SEC's rule change would require investment advisers and funds to register with the agency before engaging in crypto custody activities. This move is seen as an effort to enhance investor protection and increase transparency in the crypto market.

CoinDesk, a leading media outlet covering the cryptocurrency industry, notes that this proposal comes at a time when institutional investment in crypto is growing rapidly.