SEC Custody Rule Enters White House Review
The SEC has sent its crypto custody rule proposal to the White House for interagency review, according to multiple reports. The rule seeks to clarify where investment advisers and registered funds can place client cryptocurrency holdings, addressing a gap in current regulations. This marks a revival of a 2023 SEC initiative that attempted to narrowly restrict custody arrangements but did not reach completion under the previous administration.
The proposal remains largely shrouded in secrecy regarding specific implementation details. However, the movement through the White House review process signals intent by the current SEC leadership to advance the rule despite ongoing political debate over crypto regulation. A vote on the separate Clarity Act in Congress has stalled, but regulators are proceeding with policy development through the administrative process.
