The Securities and Exchange Commission has sent a new proposal to the White House concerning rules for investment advisors holding digital assets for their clients.
The item was sent to the White House’s Office of Management and Budget on Aug. 25, according to a post on its website.
It’s the latest sign of financial regulators moving forward with the Trump administration’s crypto agenda while legislation to delineate crypto market structure regulation lingers in the Senate.
The proposed rule would “clarify the framework for the custody of crypto assets” for investment advisors and investment companies, according to the rule’s description on a federal list of forthcoming SEC rules. The proposal is in response to questions by investment companies and advisors about how to hold digital assets for their clients without running afoul of agency rules, the agency said.
The proposed rule would also eliminate some existing custody requirements, which the SEC said have been rendered “outdated” due to market evolution and current trading and holding practices.
The SEC said the proposed rule is part of Chairman Paul Atkins’ efforts to bring its regulatory framework into the modern era.
Full details of the new proposal won’t be known until the White House’s Office of Management and Budget completes its review of the SEC rule. Once it’s sent back to the agency, potentially with edits, the members of the commission, currently three Republicans, will vote on it and release it to the public.
The SEC typically takes public comment for at least 60 days before it will review the input and incorporate it into a final version of the rule, which will also have to be voted on before it can go into effect.
This article was provided by Bloomberg News.