SEC Sends Crypto Custody Proposal to White House

The Securities and Exchange Commission (SEC) has sent a proposal to the White House aiming to clarify and modernize custody rules for crypto assets held by investment advisers and companies.

The move comes after the Clarity Act vote was delayed until September, but regulators like the SEC and Commodity Futures Trading Commission (CFTC) have said they will proceed with rulemaking to improve custody clarity and support fundraising in the cryptocurrency space.

The proposal aims to remove outdated provisions and align custody with current security and trading practices. According to the SEC, this rule change would 'clarify the framework for the custody of crypto assets' and make other modernizations needed to provide investor protection given the evolution in markets and security trading and holding practices.