Key Takeaways
Bitcoin Magazine reports the SEC proposed new rules to govern investment funds' custody of crypto assets, providing a regulatory framework.
According to Bitcoin Magazine, the U.S. Securities and Exchange Commission has proposed new rules to update asset handling for investment advisers and regulated funds, focusing on crypto.
In a statement, SEC Chairman Paul S. Atkins noted that the crypto asset market has grown into a multi-trillion-dollar class since Bitcoin's advent in 2008, while existing rules have lagged. The proposal intends to offer a compliant pathway for custody where none previously existed.
The regulator stated that advisers and funds may hold client crypto themselves if no permitted custodian is available. Additionally, blockchain records and state trust companies could count toward compliance under specific conditions.
The rulemaking moves forward despite lawmakers blocking the Clarity Act last month in a procedural vote. Regulators had previously indicated they would regulate the industry regardless of the legislation's passage. SEC Chairman Atkins stated he will still work to make the U.S. the crypto capital of the world.
Source & Fact-Check Note
https://bitcoinmagazine.com/news/sec-proposes-crypto-custody-rules
