SEC considering scrapping Biden-era crypto custody rule: report

The American Commission for Securities and Exchange plans to make a proposed rule back down which would impose more stringent guard requirements for placement advisers managing cryptocurrencies.

The acting president of the SEC, Mark Uyeda, announced on Monday the potential reversal at an industry conference in San Diego, citing concerns about the vast challenges of the scope and compliance of the rule, according to Reuters statement.

The Garde rule, proposed in February 2023 as part of the Biden administration, would require Investment advisers recorded to store cryptographic assets with a qualified goalkeeper while responding to additional guarantees.

Uyeda acknowledged that public comments had raised significant objections, which prompted the agency to explore other approaches.

ETF to report monthly participations

Uyeda also indicated that the SEC examines a separate rule requiring common funds and negotiated funds on the stock market to report these portfolio assets instead of quarterly.

The regulations, adopted in August 2023, aimed to improve transparency, but the comments of the industry highlighted concerns – in particular with regard to the role of artificial intelligence (IA) in trading strategies.

These movements reflect a broader change in SECOND Policy under the Trump administration, which has already reversed several initiatives linked to the crypto introduced Under the former president Gary Gensler. The SEC recently canceled the accounting advice for cryptographic companies, abandoned the implementing measures against industry players and has established a crypto working group to assess regulatory priorities.

With the former SEC Curator Paul Atkins set to take over As president, Uyeda’s push for regulatory revisions signals a position more suited to industry, in particular to digital assets and financial institutions, suspicious of strict compliance requests.