SEC Reevaluates Crypto Custody Rule Proposed Under Biden Administration

Acting Chair Mark Uyeda signals potential withdrawal of the rule after public criticism and explores alternatives with White House crypto task force.

The SEC is reconsidering a 2023 proposal to expand investment advisers' custodial requirements to include crypto assets, citing public and industry concerns.
Acting Chair Mark Uyeda highlighted criticism of the rule's broad scope and its potential to limit access to crypto as an asset class.
The agency is working with the White House’s crypto task force to explore alternatives, including the possibility of withdrawing the rule entirely.
Uyeda criticized the previous administration's regulatory approach, citing 'rulemaking shortcuts' that led to legal challenges and a need to restore the SEC's procedural standards.
Paul Atkins, nominated by President Trump, is expected to succeed Uyeda as SEC Chair, pending Senate confirmation hearings.