#SECProposesCryptoCustodyFramework #SECProposesCryptoCustodyFramework
🇺🇸 SEC Moves to Rewrite Crypto Custody Rules
The U.S. Securities and Exchange Commission has proposed a new framework designed specifically for how registered investment advisers and regulated funds can custody crypto assets.
The proposal could mark an important change in how institutional investors handle digital assets under U.S. securities regulations.
🔐 What Does the Proposal Include?
Under the proposed framework:
• Registered advisers and regulated funds could self-custody crypto assets under certain conditions.
• State trust companies could serve as custodians for crypto assets, subject to requirements.
• Existing custody rules would be modernized to better reflect how digital assets are actually held and transferred.
• Additional recordkeeping, reporting and disclosure requirements would help support regulatory oversight and investor protection.
📊 Why It Matters
Crypto custody has always been a major issue for institutional adoption because digital assets operate differently from traditional securities.
A clearer regulatory framework could give investment advisers and funds more defined compliance pathways for holding crypto assets, while maintaining requirements around safeguarding client assets.
The SEC says the proposal is intended to address the unique characteristics of crypto assets while facilitating investment and strengthening investor protections.
⚠️ Important: This Is Still Only a Proposal
The new framework is not final yet.
The SEC will accept public comments for 60 days after the proposal is published in the Federal Register. After reviewing comments, the Commission will decide whether and how to finalize the rules.
If adopted, these rules could provide a much more clearly defined regulatory path for institutional crypto custody in the United States.
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