SEC · Wall Street · CLARITY Act · Bitcoin Magazine
SEC Proposes New Rules On Crypto Custody
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The regulator proposed new rules it said would help govern investment funds’ custody of crypto assets.
Key facts
- Unfortunately, their rules and regulations have not kept pace,” SEC Chairman Paul S
- Regulators are pushing ahead with rulemaking for the digital asset space despite lawmakers blocking the Clarity Act last month
- Since the advent of Bitcoin in 2008, the crypto asset market has grown from a niche curiosity into a multi-trillion-dollar asset class to which investors actively seek exposure
- The SEC before the vote sent a proposal to the White House aiming to “clarify the framework for the custody of crypto assets” for investment advisers and companies
Summary
The U.S. Securities and Exchange Commission has proposed new rules to update how investment advisers and regulated funds hold assets, with a big focus on crypto. Thursday, the Wall Street watchdog said it would allow advisers and funds acting through their advisers, to hold client crypto themselves, but only if no permitted custodian is available. Regulators are pushing ahead with rulemaking for the digital asset space despite lawmakers blocking the Clarity Act last month. The long-awaited legislation, a framework for distinguishing between digital assets that are securities, commodities or payment stablecoins, didn’t get the votes needed to advance.