The U.S. Securities and Exchange Commission (SEC) is considering rolling back a proposed crypto asset custody rule following significant industry objections.
Background of the Review
The rule, proposed in February 2023, required investment advisors to store cryptocurrencies with qualified custodians. Public feedback highlighted substantial issues, prompting the SEC to explore alternative strategies.
Experts Discuss New Policies
With Paul Atkins set to become SEC Chair, the shift indicates a potentially more industry-friendly stance, particularly for digital assets and financial institutions wary of stringent compliance demands.
Changes in Other Regulations
The SEC is also reviewing a rule requiring mutual funds and ETFs to report portfolio holdings monthly since its August 2023 adoption. Concerns were raised, notably about the role of AI in trading strategies.
Changes in SEC policy and the potential appointment of Paul Atkins as chair point to a more flexible approach to cryptocurrency regulation, considering industry feedback.
