US SEC proposes new custody framework for digital assets
CIE News ·
The US SEC released a proposed rule outlining crypto custody requirements for investment advisers and funds, opening a 60-day public comment window, according to CoinDesk.
The U.S. Securities and Exchange Commission has proposed a new regulatory framework clarifying how investment advisers and funds handle and safeguard customer digital assets, according to CoinDesk. SEC Chairman Paul Atkins stated that the initiative aims to establish a compliant custody structure to replace legacy standards built exclusively for traditional assets.
The proposed rules define which entities qualify as crypto custodians, set reporting and disclosure standards for registered advisers, and outline industry auditing requirements, CoinDesk reported. Additionally, the proposal permits self-custody under designated conditions and authorizes the use of state-chartered trusts to act as custodians.
The regulatory proposal is currently subject to a 60-day public comment period. The release arrived shortly before the planned departure of Commissioner Hester Peirce, who headed the commission's Crypto Task Force.