The Digital Chamber Praises SEC Custody Rules Modernization Effort

WHY IT MATTERS

When you buy stocks or crypto through a financial company, that company needs to keep your assets safe — this is called "custody," similar to how a bank holds your money in a vault. In the United States, the SEC sets rules about how companies must store and protect customer assets. These rules were originally written for traditional assets like stocks and bonds, not digital assets like cryptocurrency. The crypto industry has argued that outdated custody rules make it harder for regulated companies to offer crypto services. If the SEC updates these rules to better fit digital assets, it could make it easier for traditional financial firms to hold crypto on behalf of their customers, potentially giving more people access to regulated crypto services.