The U.S. Securities and Exchange Commission has submitted a proposed rule on how investment advisers hold clients’ digital assets to the White House Office of Management and Budget, according to Bloomberg. The proposal would clarify the framework governing how investment advisers and investment companies custody crypto assets, responding to questions from institutions over compliant digital asset custody. It would also remove parts of existing custody requirements that are now viewed as outdated because of market changes and current trading and custody practices. The proposal is being seen as part of financial regulators’ effort to advance the current administration’s crypto agenda while related legislation remains stalled in the Senate. Before the rule can take effect, it must still go through OMB review, a vote by SEC commissioners, and a public comment process.
The U.S. Securities and Exchange Commission has submitted a proposed rule to the White House Office of Management and Budget on how investment advisers hold clients’ digital assets, according to Bloomberg.
Proposal targets crypto custody rules
The rule would "clarify the framework" for how investment advisers and investment companies custody crypto assets. It is meant to address questions from institutions about how to custody digital assets in a compliant way. The proposal also seeks to remove parts of current custody requirements that are considered "outdated" in light of market changes and current trading and custody practices.
More review steps remain
Bloomberg said the proposal is being viewed as a step by financial regulators to move forward with the current administration’s crypto agenda while related legislation remains stalled in the Senate. The rule would still need to pass OMB review, win approval from SEC commissioners, and go through public comment before it could take effect.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
