The Securities and Exchange Commission (SEC) has sent a regulatory proposal to the White House designed to clarify the framework for crypto asset custody. Submitted on Tuesday, the rule change aims to modernize regulations surrounding custody for investment advisers and investment companies.
According to the proposal, the rulemaking seeks to remove burdens from outdated provisions that are no longer necessary for investor protection, citing the evolution of markets, security trading, and holding practices.
This development follows a delayed vote on the Clarity Act. Pro-crypto lawmakers had intended to pass the legislation before Congress left for the August recess, but the vote was postponed to September after Democrats raised objections to the latest draft. Republican senators, including Cynthia Lummis, accused certain individuals of deliberately holding back the bill.
Despite the legislative delay, regulators continue to pursue crypto policy initiatives. Commodity Futures Trading Commission (CFTC) Chairman Michael Selig previously stated that the agency would proceed with rulemaking regardless of whether the Clarity Act is enacted, with the goal of finalizing rules before the current administration's term ends. Additionally, the SEC proposed a framework earlier in the month allowing token issuers to raise capital in the United States without violating securities laws.
President Donald Trump recently urged lawmakers to advance the Clarity Act. Meanwhile, SEC Chair Paul Atkins expressed a commitment to supporting Congress in passing the legislation.
