SEC Considers Changes to Crypto Custody Rule
# Ethereum # Bitcoin - BTC
The US Securities and Exchange Commission is contemplating revising or eliminating a rule proposed during the Biden administration that would enhance crypto custody standards for investment advisers. Acting chair Mark Uyeda mentioned at an investment conference that the proposed rule, which garnered significant concerns over its broad scope, might face challenges in its original form. Uyeda has instructed SEC staff to collaborate with the crypto task force to explore alternative options, potentially including withdrawing the rule. The rule, introduced under Gary Gensler's leadership, aimed to broaden custody regulations for investment advisers to cover all assets, including crypto, and impose stricter protective measures. The proposal drew criticism from Uyeda, Commissioner Hester Peirce, and industry groups, who argued it was unlawful and risky. Uyeda's recent statements follow his previous inquiry about abandoning a proposal requiring certain crypto firms to register as exchanges with the SEC.
