The U.S. Securities and Exchange Commission (SEC) is reconsidering a proposal to tighten crypto custody rules for investment advisers.
SEC Reconsiders Rules After Industry Criticism
The original proposal, introduced in February 2023 under former SEC Chair Gary Gensler, sought to expand custody requirements to cryptocurrencies. Critics argued that this could limit cryptocurrency firms' access to qualified custodians, as many banks are reluctant to handle digital assets.
Regulatory Changes for Crypto: A New Approach
Beyond the crypto custody proposal, the SEC is considering potential revisions to a rule requiring funds to report portfolio holdings monthly instead of quarterly. The changes signal a shift in SEC policy direction, aiming to reduce costs and risks.
SEC Policy Shift and Future Prospects Under New Leadership
Recent actions by the SEC have relaxed some control measures, including rescinding previous accounting guidance for crypto firms. With Paul Atkins as chair, the SEC is expected to continue adjustments that consider industry interests.
The U.S. Securities and Exchange Commission is moving towards a more industry-friendly approach. The ongoing initiatives aim to balance regulatory oversight with market participant interests.
