SEC moves crypto custody rule forward with White House review

The U.S. Securities and Exchange Commission has sent a proposed overhaul of crypto custody rules for investment advisers and investment companies to the White House for review. Summary The SEC sent its proposed crypto custody rule to the White House Office of Management and Budget on Aug. 25. The proposal would clarify how investment advisers and investment companies can hold crypto assets for clients. The SEC could remove some existing custody requirements it considers outdated under current market practices. The full proposal will become public after White House review and an SEC commission vote. The White House Office of Management and Budget received the proposal on Aug. 25, placing the planned rule changes under executive review before the SEC can release the full text and seek a commission vote. The proposal would clarify how investment advisers and investment companies can hold crypto assets for clients while complying with existing SEC custody requirements. The agency said firms have raised questions about how digital assets can be held under rules written before crypto became part of regulated investment products and advisory portfolios. Alongside the provisions covering d...