SEC Proposes New Crypto Custody Rules to White House

A proposal from the Securities and Exchange Commission has been forwarded to the White House. It intends to 'clarify the framework for the custody of crypto assets' for investment advisers and companies.

The regulator submitted a rule change on Tuesday, stating it aimed to 'improve and modernize the regulations' around crypto custody.

This proposal follows a delayed vote on the highly anticipated Clarity Act. Even with the delay, agencies such as the SEC and CFTC have indicated they will continue efforts to shape crypto policy.

JUST IN: SEC has sent a new proposal to the White House concerning "amendments to the custody rules" to "clarify the framework for the custody of crypto assets"

According to the proposal, “This rulemaking would clarify the framework for the custody of crypto assets for investment adviser and investment companies, as well as make other modernizations needed to remove burdens from certain outdated provisions that are no longer needed to provide investor protection given the evolution in the markets and security trading and holding practices.”

Lawmakers favoring crypto had aimed to pass the Clarity Act prior to Congress's August break, but the vote was pushed to September when Democrats objected to the newest version.

Certain Republican senators, including Cynthia Lummis, charged that some were intentionally stalling the bill.

Nonetheless, regulators supportive of crypto intend to move forward. CFTC Chair Michael Selig stated he would continue rulemaking regardless of the Clarity Act's passage, with the goal of finalizing regulations before the current administration's term ends.

Earlier in August, the SEC put forward its own framework enabling token issuers to raise funds in the U.S. while staying compliant with securities laws.

Donald Trump ran for president on a platform supporting the crypto industry and gained substantial support from Silicon Valley entrepreneurs. Since assuming office, regulators have adopted a notably different stance toward overseeing the digital asset sector.

Last week, the president called on lawmakers to pass the Clarity Act. SEC Chair Paul Atkins stated he is 'committed to supporting Congress in advancing' the legislation.