SEC Sends Crypto Custody Rule Overhaul to White House for Review
The Securities and Exchange Commission (SEC) has sent a proposal to overhaul crypto custody rules to the White House for review, marking an important step in clarifying how investment advisers can hold digital assets on behalf of clients.
The current rules were designed around traditional securities and financial intermediaries, rather than blockchain-based assets held through digital wallets and specialized custodians. The SEC has stated that the proposal would 'clarify the framework for the custody of crypto assets' and make other modernizations to remove burdens from outdated provisions.
The move is part of a wider rewrite of digital asset policy under SEC Chair Paul Atkins, who has issued guidance addressing several areas that previously created uncertainty for crypto companies and investors. The agency has clarified that memecoins generally do not fall within securities laws under certain circumstances and has addressed which staking activities may operate outside the securities framework.