SEC Pushes Forward with Crypto Custody Rule Amid Senate Stalls

The US Securities and Exchange Commission (SEC) has submitted a proposal to rewrite how investment advisers and funds hold crypto assets for clients, despite stalling on the CLARITY market-structure bill in the Senate.

According to the SEC, the proposed rule, called 'Amendments to the Custody Rules,' aims to clarify the framework for custody of crypto assets and remove outdated provisions that no longer serve investor protection.

The proposal was sent to the Office of Information and Regulatory Affairs (OIRA) on August 25, but it is not yet public. OMB can send back requested changes before it goes back to the SEC.

SEC Chair Paul Atkins said he is 'committed to supporting Congress in advancing' the CLARITY Act, which would provide clearer guidance for the industry.