SEC may revisit strict cryptocurrency custody rules for advisers

The US Securities and Exchange Commission (SEC) is considering revising or rejecting a proposal drafted by former Chairman Gary Gensler that would tighten cryptocurrency custody requirements for investment advisers. The proposal, introduced two years ago, would require advisers to hold assets at federally or state-registered institutions.

Acting SEC Chairman Mark Uyeda acknowledged there were «serious concerns» about the broad scope of the proposed rules. In response to these comments, the SEC has begun exploring alternatives, including potentially repealing the rule. Changes in the approach to regulating cryptocurrency companies have been an important part of the SEC's revised course following Gensler's resignation.

The policy revisions could ease pressure on the cryptocurrency market, which has endured years of uncertainty and litigation, as seen in the Ripple example. The proceedings with the cryptocurrency company began back in 2020, when the SEC accused the company of illegally selling XRP to the tune of $1.3 billion. This is reported by Decrypt.