{"id":125271,"date":"2025-03-18T02:15:37","date_gmt":"2025-03-18T02:15:37","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=125271"},"modified":"2025-03-18T02:15:37","modified_gmt":"2025-03-18T02:15:37","slug":"sec-could-axe-proposed-biden-era-crypto-custody-rule-says-acting-chief","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=125271","title":{"rendered":"SEC could axe proposed Biden-era crypto custody rule, says acting chief"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsThe US Securities and Exchange Commission could change or scrap a rule proposed under the Biden administration that would tighten crypto custody standards for investment advisers, according to the agency\u2019s acting chair, Mark Uyeda.<br \/>\nIn prepared remarks to an investment industry conference in San Diego on March 17, Uyeda said the rule proposed in February 2023 had seen commenters express \u201csignificant concern\u201d over its \u201cbroad scope.\u201d<br \/>\n\u201cGiven such concern, there may be significant challenges to proceeding with the original proposal. As such, I have asked the SEC staff to work closely with the crypto task force to consider appropriate alternatives, including its withdrawal,\u201d Uyeda said.<br \/>\nThe rule was floated under the Biden administration during Gary Gensler\u2019s tenure leading the regulator. It aimed to expand custody rules for investment advisers to any and all assets held for a client, including crypto, and upped the requirements to protect them.<br \/>\nSource: SECThis meant that investment advisers would have to custody their clients\u2019 crypto with a qualified custodian. Gensler said at the time that investment advisers \u201ccannot rely on\u201d crypto platforms as qualified custodians due to how they operate.<br \/>\nThe proposal caused friction with Uyeda and Commissioner Hester Peirce, along with industry advocacy bodies who claimed the rule was unlawful and dangerous.<br \/>\n\u201cHow could an adviser seeking to comply with this rule possibly invest client funds in crypto assets after reading this release?\u201d Uyeda remarked at the time. He did, however, support the proposal despite disagreeing \u201cwith a number of provisions.\u201d\u00a0<br \/>\nPeirce, who was the sole commissioner of the five to vote against the rule, said at the time that the proposed rule \u201cwould expand the reach of the custody requirements to crypto assets while likely shrinking the ranks of qualified crypto custodians.\u201d<br \/>\nRelated: Congress repealed the IRS broker rule, but can it regulate DeFi?\u00a0<br \/>\nUyeda\u2019s latest remarks come days after he said on March 10 that he had asked SEC staff \u201cfor options on abandoning\u201d part of a proposal pushing for some crypto firms to register with the regulator as exchanges.<br \/>\nThe Trump-era SEC has also killed a rule that asked financial firms holding crypto to record them as liabilities on their balance sheets, called SAB 121.<br \/>\nIn December, President Donald Trump picked former SEC Commissioner Paul Atkins to take over from Uyeda to chair the agency. This is now a step closer, with a Senate hearing reportedly slated for March 27.<br \/>\nMagazine: SEC\u2019s U-turn on crypto leaves key questions unanswered\u00a0<a href=\"https:\/\/cointelegraph.com\/news\/sec-could-axe-proposed-crypto-custody-rule?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsThe US Securities and Exchange Commission could change or scrap a rule proposed under the Biden administration that would tighten crypto custody standards for investment advisers, according to&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125271"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=125271"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125271\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=125271"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=125271"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=125271"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}