The U.S. Securities and Exchange Commission (SEC) has submitted a proposal to amend custody rules for investment advisers handling digital assets to the White House for review, following concerns raised by advisers about compliance with existing requirements. The move aims to modernise outdated provisions and provide clarity on custody frameworks for crypto assets, according to Bloomberg, which first reported the development.
The proposed changes follow guidance released by the SEC and Commodity Futures Trading Commission (CFTC) in March, which clarified that memecoins are not securities and defined staking activities outside the scope of securities law. The SEC has also previously outlined a tailored regime, “Regulation Crypto Assets,” designed to facilitate capital raising while safeguarding investors.
The agency stated the rulemaking would “modernise outdated provisions” and “remove burdens” from custody rules, reflecting evolving market practices. However, an innovation exemption framework proposed by SEC Chair Paul Atkins to fast-track crypto products has yet to be implemented, leaving some aspects of regulatory oversight unresolved.
The proposal now awaits review by the Office of Information and Regulatory Affairs, a standard step before federal regulations are finalised. The SEC’s efforts to adapt frameworks for digital assets have been a key focus under Atkins, who has led initiatives to address regulatory gaps in the sector.
Written by Steven Cook
Regulation Desk
