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SEC Moves to Overhaul Custody Rules for Investment Firms' Digital Assets
Finance · Investment Managers · yonhap_finance · 2026-08-26
The U.S. SEC has submitted a proposal to the OMB to modernize custody regulations for digital assets held by investment advisers and firms.
What Happened
Regulatory Overhaul: The U.S. Securities and Exchange Commission (SEC) has initiated a process to reform custody rules regarding digital assets for investment advisers and firms. The agency recently submitted a proposal to the Office of Management and Budget (OMB) to clarify the regulatory framework.
Strategic Context: This initiative is part of a broader modernization effort led by SEC Chair Paul Atkins to align regulations with current market practices. Investment firms have long sought clearer guidelines to hold digital assets without the risk of regulatory non-compliance.
Addressing Policy Gaps: The move is seen as an attempt by financial regulators to fill the void left by stalled legislative efforts in Congress regarding cryptocurrency. The proposal aims to refine or eliminate certain requirements within existing custody rules to better reflect modern trading and storage practices.
Next Steps: Specific details of the proposal remain confidential until the OMB completes its review. Once reviewed, the plan will return to the SEC for a vote and public release, followed by a minimum 60-day public comment period before final adoption.