SEC Submits Proposal to Revamp Cryptocurrency Custody Rules

The US Securities and Exchange Commission (SEC) has submitted a proposal to the White House Office of Management and Budget (OMB) to update the regulatory framework for the cryptocurrency market. According to Bloomberg, the proposal aims to clarify rules regarding the custody of crypto assets held by investment advisors and investment firms.

The SEC's new proposal seeks to modernize existing regulations and address current uncertainties surrounding the custody of crypto assets. It will create a clearer framework for how investment advisors and investment firms can hold crypto assets in accordance with existing SEC rules.

Once the White House OMB reviews the proposal, it is expected to be evaluated by the SEC and released to the public for a 60-day comment period. After that, the SEC will need to hold a final vote before the regulation goes into effect.