SEC advances cryptocurrency custody rules, proposal submitted to White House for review

Taylor Lindman, Chief Legal Advisor of the US Securities and Exchange Commission's (SEC) Crypto Working Group, stated that the SEC is advancing rules for custody of cryptocurrency assets, and the related proposals have been submitted to the White House Office of Management and Budget (OMB) for review, covering investment firms and broker dealers. This rule aims to clarify the registration requirements for broker dealers to hold non securities encrypted assets and allow investment advisors to store client assets in state chartered trusts. After the proposal is reviewed, the SEC will solicit opinions from the public. The SEC has issued an employee statement guiding broker dealers in handling cryptocurrency custody and allowing investment advisors to store client assets in state chartered trusts.