On August 26, Bloomberg reported that the U.S. Securities and Exchange Commission (SEC) has submitted a proposal to the Office of Management and Budget (OMB) regarding new regulations for investment advisors holding client digital assets. The rule aims to 'clarify the framework for investment advisors and investment companies to custody crypto assets,' addressing inquiries from institutions on how to comply with the custody of digital assets. It plans to eliminate certain existing custody requirements that are considered 'outdated' due to market evolution and current trading and custody practices. This proposal is seen as a step by financial regulators to advance the current administration's crypto agenda while relevant legislation remains stalled in the Senate. It will take effect after review by the OMB, a vote by SEC commissioners, and a public comment period.
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