SEC proposes new crypto custody and fundraising rules

The SEC has proposed new crypto custody rules and fundraising exemptions to modernize regulations and support evolving market practices.

The U.S. Securities and Exchange Commission (SEC) has submitted several proposals to the White House Office of Management and Budget (OMB) to modernize the regulatory framework for crypto assets. The primary proposal aims to clarify how investment advisers and companies can custody digital assets for clients, removing outdated requirements and reflecting recent market developments. Labeled as economically significant and deregulatory, the filing aligns with Executive Order 14192, which requires eliminating ten regulations for every new one introduced. The SEC also introduced Regulation Crypto Assets, which proposes exemptions allowing startups to raise up to $5 million over four years and eligible issuers up to $75 million in any 12-month period, subject to strict reporting and investor limits. These changes could significantly impact how financial institutions and advisers manage crypto assets, potentially boosting market participation. Full proposal details will be released after OMB review, followed by a public comment period of at least 60 days before final adoption.