U.S. SEC Proposes New Rule for Crypto Asset Custody
- The SEC proposed a new rule to clarify how investment firms can handle customer crypto assets.
- Chairman Paul Atkins stated the proposal aims to replace outdated custody rules with a clear regulatory framework.
- The rule is open for public comment for a period of 60 days, allowing feedback from industry stakeholders.
- It will define which companies can hold crypto assets and establish record-keeping and disclosure requirements.
- Self-custody of crypto assets may be permitted under certain conditions, along with the use of state-chartered trusts as custodians.
This proposal seeks to address the inadequacies of existing custody rules that only consider traditional assets, highlighting the need for updated regulations in the digital age.
With this new rule, investment advisers will have a compliant pathway to manage crypto assets effectively, marking a significant shift in regulatory clarity for the industry.
