- The SEC has submitted a proposal to modernize crypto custody regulations for investment advisers and companies.
- The rulemaking aims to clarify the framework for custody of crypto assets and remove outdated provisions.
- This move follows a stalled vote on the Crypto Clarity Act, though the SEC continues to push pro-crypto policy updates.
The United States Securities and Exchange Commission (SEC) submitted a proposal Tuesday for new rules to modernize the regulatory framework for crypto asset custody. The regulator stated it wanted to “improve and modernize the regulations” for the crypto space in a rule change detailed on RegInfo.gov.
“This rulemaking would clarify the framework for the custody of crypto assets for investment advisers and investment companies,” the proposal read. The SEC also aims to remove burdens from outdated provisions that are no longer needed for investor protection given market evolution.
Meanwhile, the SEC has pursued several pro-crypto moves despite the broader Crypto Clarity Act remaining in legislative limbo. Earlier this month, the agency began preparing an “innovation exemption” to allow 24/7 trading of tokenized stocks on the blockchain.
The president urged lawmakers to pass the Clarity Act last week, with SEC Chair Paul Atkins stating he is “committed to supporting Congress in advancing” the bill. Consequently, the latest proposal fulfills the SEC’s promise to push through new crypto legislation regardless of the larger act’s status.
The SEC’s proposed framework is narrower than the comprehensive CLARITY Act, which aims to bring more regulatory clarity and investor protection. Both developments are welcome for the crypto sector.
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