- The SEC has sent proposed changes to its investment adviser crypto custody rules to the White House for review.
- The proposal aims to clarify how advisers and investment companies can custody digital assets while remaining compliant.
- The changes are part of a broader SEC effort to modernize crypto regulations under Chair Paul Atkins.
The U.S. Securities and Exchange Commission is moving forward with proposed changes to its crypto custody rules, sending the framework to the White House for regulatory review.
The Office of Information and Regulatory Affairs is now reviewing the proposal before it can move toward publication.
SEC Targets Crypto Custody Uncertainty
The SEC said investment advisers have raised questions about how they can hold digital assets for clients while complying with existing custody requirements.
The proposed changes would clarify the framework for investment advisers and investment companies while modernizing outdated provisions that the agency believes are no longer necessary for investor protection.
The changes could provide greater clarity for traditional financial firms looking to offer crypto custody or manage digital assets on behalf of clients.
SEC Continues Crypto Regulatory Overhaul
The custody proposal is the latest part of a broader shift in crypto regulation under SEC Chair Paul Atkins.
The agency has already issued guidance addressing memecoins and staking while working with the CFTC to clarify how federal securities laws apply to digital assets.
Last week, the SEC also proposed Regulation Crypto Assets, a new framework that could provide exemptions for certain digital asset offerings while establishing clearer requirements for crypto fundraising.
Innovation Exemption Still Ahead
The industry is also waiting for the SEC’s planned innovation exemption.
Atkins has previously discussed creating a framework that could provide regulatory relief for companies launching tokenized securities through decentralized and other emerging platforms.
That proposal has not yet been introduced.
With the crypto custody overhaul now undergoing White House review, the SEC appears to be moving another major piece of its digital asset regulatory agenda closer to implementation.
