The Securities and Exchange Commission sent a proposed rule on digital asset custody to the White House's Office of Management and Budget on Aug. 25, aiming to clarify how advisers and investment companies can hold crypto for clients. The filing follows a separate SEC proposal, unveiled Aug. 18, that would let qualifying token issuers raise up to $75 million every 12 months. The custody filing is part of Chairman Paul Atkins' push to modernize the agency's regulatory framework.
Bloomberg first reported that the Securities and Exchange Commission sent a proposed rule on digital asset custody to the White House for review. The agency filed the proposal with the Office of Management and Budget on Aug. 25 as it steps up work on the Trump administration's crypto agenda.
What the custody rule would change
The rulemaking would clarify how investment advisers and investment companies can custody crypto assets for clients. It would also remove outdated custody provisions that the SEC says no longer protect investors given how digital asset markets and trading practices have changed. The effort is part of Chairman Paul Atkins' push to modernize the SEC's regulatory framework.
Timeline before a final rule
Details will not be released until the Office of Management and Budget completes its review, and the proposal could still change before publication. If it moves forward, the SEC would generally open a public comment period of at least 60 days before drafting a final rule and putting it to a commission vote.
A parallel push on token fundraising
According to Cointelegraph, the SEC unveiled a separate Regulation Crypto Assets proposal on Aug. 18 that creates two exemptions for crypto investment contracts. The first is a one-time exemption of up to $5 million over four years for startups. The second, modeled in part on Regulation A, allows up to $75 million in each 12-month period. The SEC estimates around 130 offerings would use the two new exemptions each year, and it estimates around 475 issuers could rely on the broader investment contract safe harbor.
Duke University lecturing fellow Lee Reiners said the $75 million exemption could make public token offerings more feasible but is unlikely to spark a return to the 2017 ICO boom.
Sources: Crypto Briefing, Cointelegraph.com News
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