SEC resurrecting U.S. crypto custody rule the previous administration failed to land - CoinDesk

The U.S. Securities and Exchange Commission (SEC) is reportedly reviving a proposal to establish custody standards for crypto assets, a rulemaking effort that stalled under the previous administration. The rule would likely apply to registered investment advisers that hold client digital assets, mandating specific safeguards and segregation requirements. While the details remain under review, the move signals that regulators still view crypto custody as a critical area needing formal guardrails.

For the market, the practical impact would hinge on the rule’s scope. Clearer custody requirements could reduce counterparty risk for institutional investors, potentially encouraging deeper participation in digital assets. Conversely, stricter compliance standards might raise operational costs for custodians and smaller firms, potentially consolidating custody services among larger players. The industry will be watching the proposal’s specific technical requirements—such as whether independent verification or insurance is mandated—and the likely comment period. As the SEC navigates its approach, the balance between investor protection and innovation will be central to how the market absorbs the eventual rule.