The Acting Chair of the United States Securities and Exchange Commission, Mark T. Uyeda, has proposed reexamining the Crypto Custody rule initiated by the Gary Gensler-led Commission
Uyeda said commentators criticized the rule, which requires registered investment advisers to keep crypto with a qualified custodian and requires those custodians to abide by certain requirements.
Speaking at the Investment Company Institute’s 2025 Investment Management Conference in San Diego, the acting chair explained why the Commission is reacting to commentators’ concerns and reversing the rule it proposed in February 2023
“Given such concern, there may be significant challenges to proceeding with the original proposal,” Uyeda said on Monday*. “As such, I have asked the SEC staff to work closely with the crypto task force to consider appropriate alternatives.”* He added
The Custody Rule
The Crypto Custody Rule, officially proposed by the Gary Gensler-led U.S. Securities and Exchange Commission (SEC) on February 15, 2023, is an amendment to the existing Investment Advisers Act Rule 206(4)-2, known as the “Custody Rule.”
This proposal aims to expand and enhance safeguards for client assets by ensuring they are managed by registered investment advisers (RIAs)
The rule seeks to protect investors by ensuring that all assets under an adviser’s custody, including crypto, are held by “qualified custodians” and properly safeguarded against misuse, loss, or insolvency
Gensler emphasized this in response to high-profile crypto platform failures like FTX, Celsius, and Voyager, where innocent investor assets were lost to fraud
This custody rule is now under examination by the Uyeda-led commission following concerns from members of the Crypto Community.
Congressional Republicans, crypto firms and traditional finance companies led the criticism of this rule. The pressure led to the proposed reexamination by the Uyeda-led commission
The Commission under Mark Uyeda is perceived to be strongly Pro Crypto following Trump’s stance on Digital assets
Mark Uyeda will be stepping down for Paul Atkins pending his confirmation by the Senate
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US SEC Acting Chair Uyeda Proposes Reexamination of Crypto Custody Rule
The Acting Chair of the United States Securities and Exchange Commission, Mark T. Uyeda, has proposed reexamining the Crypto Custody rule initiated by the Gary Gensler-led Commission
Uyeda said commentators criticized the rule, which requires registered investment advisers to keep crypto with a qualified custodian and requires those custodians to abide by certain requirements.
Speaking at the Investment Company Institute’s 2025 Investment Management Conference in San Diego, the acting chair explained why the Commission is reacting to commentators’ concerns and reversing the rule it proposed in February 2023
The Custody Rule
The Crypto Custody Rule, officially proposed by the Gary Gensler-led U.S. Securities and Exchange Commission (SEC) on February 15, 2023, is an amendment to the existing Investment Advisers Act Rule 206(4)-2, known as the “Custody Rule.”
This proposal aims to expand and enhance safeguards for client assets by ensuring they are managed by registered investment advisers (RIAs)
The rule seeks to protect investors by ensuring that all assets under an adviser’s custody, including crypto, are held by “qualified custodians” and properly safeguarded against misuse, loss, or insolvency
Gensler emphasized this in response to high-profile crypto platform failures like FTX, Celsius, and Voyager, where innocent investor assets were lost to fraud
This custody rule is now under examination by the Uyeda-led commission following concerns from members of the Crypto Community.
Congressional Republicans, crypto firms and traditional finance companies led the criticism of this rule. The pressure led to the proposed reexamination by the Uyeda-led commission
The Commission under Mark Uyeda is perceived to be strongly Pro Crypto following Trump’s stance on Digital assets
Mark Uyeda will be stepping down for Paul Atkins pending his confirmation by the Senate