The U.S. Securities and Exchange Commission (SEC) is considering changing or scrapping stricter cryptocurrency custody rules proposed by the previous administration.
Revising Crypto Custody Rules
Acting SEC Chair Mark Uyeda announced potential changes to rules proposed by the previous administration. These rules would require investment advisers to store cryptocurrencies with qualified custodians, raising industry concerns.
Impact on Investment Companies
The rules would have forced investment advisors dealing with cryptocurrencies and other assets to meet stricter standards. Uyeda also disclosed that the SEC is considering changes to mutual and exchange-traded fund reporting rules.
Future SEC Regulation
Uyeda emphasized the need for effective and cost-efficient regulations that respect SEC’s statutory authority. This marks the second time this month that proposed changes are revisited, indicating a shift under the Trump administration.
The shift in crypto regulation approach highlights the need for the SEC to adapt its policies to evolving financial technologies.
