SEC Proposes New Rules On Crypto Custody
By Mathew Di Salvo
AI summary of the source article
The U.S. Securities and Exchange Commission has proposed updated custody rules for investment advisers and regulated funds holding digital assets. Under the plan, advisers and funds can custody client crypto directly only when no permitted custodian is available. The proposed framework also allows state trust companies to act as custodians and recognizes blockchain-based records toward compliance under certain conditions. SEC Chairman Paul S. Atkins stated the proposal aims to offer a compliant pathway for crypto custody. The action proceeds despite lawmakers blocking the Clarity Act.
Why it matters
According to SEC Chairman Paul S. Atkins, the proposal provides a clear regulatory framework and compliant pathway for crypto custody where none previously existed.
Key facts
- The SEC proposed rules allowing advisers and regulated funds to hold client crypto themselves only if no permitted custodian is available.
- Blockchain records and state trust companies may qualify for compliance and custody under conditional rules.
- The SEC moved forward with rulemaking after lawmakers blocked the Clarity Act in a procedural vote.