SEC Proposes Updated Crypto Custody Rules Amid Regulatory Gridlock

The Securities and Exchange Commission (SEC) has sent its proposal for updated cryptocurrency custody rules to the White House's Office of Management and Budget (OMB). The proposed rulemaking aims to clarify the framework for crypto asset custody for investment advisers and investment companies, addressing current ambiguities.

According to the SEC, the updates will remove burdens from outdated provisions that are no longer necessary. This comes as lawmakers have been struggling to pass legislation defining crypto market structure regulation, known as the Clarity Act.

The CFTC has also taken steps to begin establishing a regime for crypto assets if the bill continues to stagnate.