SEC Rethinks Crypto Custody Rules Amid Industry Pushback
The U.S. Securities and Exchange Commission (SEC) is reconsidering its crypto custody rules following pushback from the industry.
Acting SEC Chair Mark Uyeda recently announced that the agency is reevaluating a proposal to expand the 2009 Custody Rule, which would require investment advisers to hold all client assets, including cryptocurrencies, with qualified custodians.
This proposal, initially backed by Gary Gensler, has faced criticism for potentially limiting crypto access to traditional financial systems. Industry players have raised concerns that the broad scope of this rule could stifle innovation in the crypto space and reduce investment opportunities.
Uyeda indicated that the SEC may adopt a more cautious approach, possibly revising or withdrawing the rule. He also criticized the fast-paced, aggressive rulemaking under previous leadership, emphasizing the need for a more deliberate, methodical process.
READ MORE: EOS Network Becomes Vaulta, Shaping the Future of Web3 Finance
This shift comes as the SEC reassesses its broader strategy toward crypto, having recently scaled back enforcement actions against major exchanges like Binance and Coinbase.
The agency has also paused or closed several key investigations and lawsuits related to crypto. Additionally, SEC Commissioner Hester Peirce hinted at new crypto regulations expected later this year, suggesting that the SEC will aim to establish a clearer, more consistent framework for the industry.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
