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SEC Proposes Crypto Custody Rule Modernization to White House

Created at 26 Aug · 3:36 PM2 sources↑ Market-relevant
IN SHORT

The U.S. Securities and Exchange Commission has sent a proposal to the White House to modernize crypto custody rules for investment advisers and companies, aiming to provide regulatory clarity.

Who's Involved

Securities and Exchange Commission
Sent proposal to White House to modernize crypto custody rules
White House
Recipient of SEC's crypto custody rule proposal
Commodity Futures Trading Commission
Committed to shaping crypto policy and proceeding with rulemaking
Donald Trump
President urging lawmakers to pass the Clarity Act

↳ Why This Matters

The SEC's proposal aims to provide much-needed clarity and modernization for how investment firms handle crypto assets, potentially easing compliance burdens and fostering greater institutional adoption.

Key facts

  • The SEC has submitted a proposal to the White House to modernize crypto custody rules for investment advisers and companies.
  • The proposal aims to clarify the framework for holding crypto assets in compliance with current requirements.
  • The SEC recently released a proposed framework for crypto startups to raise capital.
  • The Clarity Act, a legislative effort to provide crypto regulatory clarity, has been delayed.
  • Regulators like the SEC and CFTC are committed to shaping crypto policy.

The U.S. Securities and Exchange Commission (SEC) has submitted a proposal to the White House aimed at modernizing and clarifying the rules surrounding the custody of crypto assets for investment advisers and companies. The proposal seeks to update existing regulations to better reflect the evolution of market practices and security trading.

This regulatory move comes despite a delay in the vote for the Clarity Act, a piece of legislation that pro-crypto lawmakers had hoped to pass. Regulators such as the SEC and the Commodity Futures Trading Commission (CFTC) have indicated their intention to proceed with shaping crypto policy independently of the act's passage.

CFTC Chairman Michael Selig has stated his commitment to finalizing rules within the current administration's term, regardless of the Clarity Act's status. The SEC itself recently proposed a framework to allow token issuers to raise capital in the U.S. without violating securities laws. President Donald Trump has urged lawmakers to advance the Clarity Act.

Frequently asked questions

The proposal aims to clarify and modernize the regulations for investment advisers and companies regarding the custody of crypto assets.

The vote for the Clarity Act slipped to September after Democrats reportedly balked at the latest draft.

Yes, both the SEC and CFTC have stated their intention to proceed with shaping crypto policy, with the CFTC aiming to finalize rules before the administration's term ends.

President Trump has urged lawmakers to pass the Clarity Act.

What Happens Next

01The SEC's proposal will undergo review by the White House.
02The Clarity Act vote is expected to occur in September.

How It Developed

The SEC has proposed new rules to the White House to modernize crypto custody for investment advisers and companies.
The SEC sent its proposed crypto rules for investment firms to the White House.
The proposal aims to amend existing rules and possibly propose new rules under the Investment Advisers Act and Investment Company Act to address crypto assets.
The SEC recently released the proposed ‘Reg Crypto’ framework.
The proposal follows a meeting between President Trump, the CFTC and SEC chairs, and crypto executives.

Sources

T1
SEC Sends Proposal to White House To Modernize Crypto CustodyBitcoin Magazine
T1
SEC Sends Proposal to White House to Overhaul Crypto Custody Rules for Investment FirmsCoinGape

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