The U.S. Securities and Exchange Commission has sent a proposal to the White House that would revise custody rules and clarify how crypto assets can be held for investment advisers and investment companies.
In the rule change sent Tuesday, the SEC said it wants to improve and modernize the regulations that govern custody in the crypto sector.
Proposal targets the custody framework for crypto assets
According to the proposal text, the rulemaking would clarify the framework for the custody of crypto assets for investment advisers and investment companies. It would also make other updates aimed at removing burdens from older provisions that the agency said are no longer needed for investor protection, given changes in markets and in security trading and holding practices.
Bitcoin Magazine highlighted a social media post saying the SEC had sent a new proposal to the White House concerning "amendments to the custody rules" to "clarify the framework for the custody of crypto assets."
Clarity Act vote slipped, but rulemaking efforts continue
The proposal comes after a delay in the expected vote on the Clarity Act. Pro-crypto lawmakers had hoped to pass the bill before Congress broke for its August recess, but the vote moved to September after Democrats balked at the latest draft, according to the report.
Some Republican senators, including Senator Cynthia Lummis, accused some of deliberately holding the bill back.
Even with that delay, pro-crypto regulators are still pushing ahead. Commodity Futures Trading Commission Chairman Michael Selig said he would proceed with rulemaking whether or not the Clarity Act is enacted, with the goal of finalizing rules before the administration's term ends.
Separate SEC proposal addressed token fundraising earlier this month
Earlier this month, the SEC also proposed its own framework that would allow token issuers to raise money in the U.S. without running afoul of securities laws, the report said.
President Donald Trump campaigned on helping the crypto industry and received major backing from Silicon Valley entrepreneurs. Since taking office, regulators have taken a sharply different approach to oversight in the digital asset sector, according to Bitcoin Magazine.
Last week, Trump urged lawmakers to get the Clarity Act over the line. SEC Chair Paul Atkins has also said he is committed to supporting Congress as it works to advance the bill.
The story was first published by Bitcoin Magazine and written by Mathew Di Salvo.