SEC Seeks Overhaul of Crypto Custody Rules

The U.S. Securities and Exchange Commission (SEC) is pushing to modernize crypto custody rules for investment firms that hold clients' cryptocurrency.

As part of SEC Chair Paul Atkins's broader effort to update financial regulation, the agency aims to clarify standards for holding digital assets and eliminate outdated provisions that no longer serve investor protection.

The overhaul is intended to reduce the regulatory burden on the industry. However, the specific revisions have not been disclosed, and the proposal could still be revised after review by the Office of Management and Budget.