Overview

• 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.