SEC readies rewrite of crypto custody rules for investment firms, seeking clearer standards for advisers holding clients' digital assets

Reports that the SEC is preparing to overhaul crypto custody rules for investment firms signal a potentially material shift in how registered advisers can hold digital assets for clients. Clearer custody standards could reduce compliance uncertainty for institutional allocators and custodians, while any tightening could raise operational costs or constrain eligible custody venues. Near-term, this increases regulatory headline sensitivity across major crypto assets.