The U.S. Securities and Exchange Commission (SEC) is taking significant steps toward establishing a regulatory framework for cryptocurrency custody. At a recent event in Washington, D.C., Taylor Lindman, the chief counsel of the SEC's Crypto Task Force, outlined the agency's plans to clarify how investment firms and broker-dealers can manage digital assets.
Currently, a custody proposal is under review by the White House, aimed at integrating non-security cryptocurrencies into the existing regulatory structure, allowing for their management by traditional financial entities without requiring special registration. Lindman noted that the intention is to assist the market in safely handling these assets within broker-dealer settings.
Once approved by the Office of Management and Budget, the SEC plans to solicit feedback from the public and industry professionals on the proposal. In the meantime, the SEC has issued staff guidance to help broker-dealers understand their obligations regarding crypto custody and has permitted investment advisors to use state-chartered trusts as qualified custodians for client assets.
