Next for the U.S. SEC: Agency's chief crypto counsel illuminates path for custody
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Taylor Lindman, chief counsel of the U.S. SEC's Crypto Task Force, outlined the agency's progress on integrating crypto assets into the regulated securities industry, focusing on an upcoming custody rule. The custody proposal, currently under White House review, aims to clarify how broker-dealers and investment advisers can handle both security and non-security crypto assets. Lindman emphasized the SEC's efforts to create a regulatory framework that accommodates blockchain assets within existing market structures.
Why it matters
The SEC's custody rule proposal will help define how regulated financial intermediaries can handle crypto assets, potentially increasing clarity and confidence for market participants. This development could influence how institutional players engage with crypto, although the source does not explicitly discuss broader market or policy impacts beyond regulatory assimilation.
Key context
The SEC is creating rules to assimilate crypto assets into existing securities regulations in the absence of Congressional legislation. An earlier 2023 custody rule effort was scrapped amid an administrative change. The current proposal builds on interim guidance issued in December and allows investment advisers to use state-chartered trusts as qualified custodians starting in September 2025.
Key numbers and entities
Taylor Lindman (SEC Crypto Task Force chief counsel), U.S. Securities and Exchange Commission (SEC), Office of Management and Budget (OMB), and broker-dealers. Previous SEC Chair Gary Gensler and former President Donald Trump are mentioned in relation to past custody rule efforts. No specific dates for the formal proposal beyond White House review are provided.
What remains unclear
The exact timeline for the custody rule’s formal proposal and implementation is not specified. Details on how the rule will differentiate custody requirements for securities vs. non-security crypto assets remain uncertain. The source does not clarify how the industry or public will respond, nor the rule’s specific market implications.