SEC Proposes Tougher Crypto Custody Rules for Advisers and Funds

The US Securities and Exchange Commission (SEC) has proposed new rules for crypto custody by investment advisers and funds. This marks a significant development in the regulatory landscape of digital assets.

The proposal is seen as a swan song for Commissioner Hester Peirce, who is set to exit this week after leading the SEC's inaugural Crypto Task Force.

According to the proposed rule, investment advisers and funds will be required to take additional steps to safeguard their crypto holdings. This includes implementing robust custody arrangements, conducting regular risk assessments, and maintaining accurate records of their digital assets.