PANews reported on March 18 that according to The Block, the U.S. Securities and Exchange Commission (SEC) is considering withdrawing a proposal to tighten cryptocurrency custody requirements, the latest move by the acting chairman under the Trump administration. SEC Acting Chairman Mark Uyeda said at the Investment Company Association's 2025 Investment Management Conference in San Diego on Monday that commentators expressed serious concerns about a rule proposed in February 2023 that requires registered investment advisers to place cryptocurrencies in the custody of qualified custodians and requires these custodians to comply with certain regulations. "Given these concerns, there may be significant challenges in advancing the original proposal, so I have asked SEC staff to work closely with the Cryptocurrency Working Group to consider appropriate alternatives."
Uyeda's speech on Monday focused primarily on the SEC's rulemaking process, including the possibility of withdrawing or re-proposing rules, or delaying compliance dates. The custody rule, proposed by the SEC under Gary Gensler during the previous Biden administration, seeks to expand existing custody rules to include any client assets held by advisors and add more protections for those assets. Uyeda's move to revisit the rule marks the second time this month that the SEC staff has been asked to reconsider its rules. Last week, Uyeda said he had directed the agency's staff to review a proposed rule change that would expand the definition of an "exchange" to potentially include decentralized cryptocurrency projects.
