The SEC reassesses the rules on the custody of cryptocurrencies

The Securities and Exchange Commission (SEC) of the United States is reconsidering a proposal to tighten the custody requirements for cryptocurrencies. 

This move marks an important turning point under the new Trump administration and reflects the policy changes of the federal financial regulator.  

SEC and the custody of cryptocurrencies: a contested rule now under review

The regulation, proposed in February 2023 under the Biden administration, required that registered investment advisors hold cryptocurrencies with a qualified custodian. In addition to this, it would have introduced stricter requirements to protect clients’ assets.  

However, numerous commentators in the financial sector and cryptocurrencies have expressed doubts about the feasibility of this regulation. According to the interim SEC Chairman, Mark Uyeda, the regulation could pose significant challenges.

“Given the level of concern, there might be significant obstacles to proceed with the original proposal”,

stated Uyeda during the Investment Management Conference 2025 in San Diego.

Following these issues, Uyeda instructed the personnel of the SEC to collaborate with the newly formed task force on cryptocurrencies to explore possible alternatives.

The objective is to find a compromise between investor protection and support for financial innovation.  

The implications for investors and financial institutions

The regulation currently under review would have expanded the rules on asset custody, imposing stricter standards for cryptocurrencies. 

If approved in its original formulation, it could have made it more difficult for numerous banche e broker to operate with the cryptocurrency sector.  

This aspect has generated a strong debate among the repubblicani del Congresso, aziende del settore crypto e operatori della finanza tradizionale. 

The American Bankers Association and other financial associations had expressed concern, emphasizing that the proposal could have significant consequences on their business.  

Signs of change under the new Trump administration

This initiative marks the second time in a single month that Uyeda steps in to reassess the SEC rules. 

Last week, he had asked the Commission staff to examine a regulatory amendment that would have expanded the definition of “borsa di scambio” to include certain progetti crypto decentralizzati.  

These moves represent a change of direction for the SEC compared to the Biden administration. 

Under the previous management, the now former President Gary Gensler had stated that the majority of cryptocurrencies, except for Bitcoin, should be considered a security and therefore subject to the strict regulations of the SEC.

Since the inauguration of the new Trump administration, the SEC has acted swiftly to amend key policies in the crypto sector.

In recent months, the regulator has canceled recent accounting guidelines on cryptocurrencies and halted enforcement actions against players in the crypto sector

Furthermore, a task force for cryptocurrencies has been established, and a real debate has begun on the legal definition of cryptocurrencies, including memecoin. 

The first meeting of the crypto task force to discuss the legal status of digital assets is scheduled for Friday. This meeting could shape the future of the sector in the United States.  

The future of crypto regulation in the United States

The reconsideration of the regulation on cryptocurrency custody highlights a more flexible approach by the SEC towards the crypto sector. 

This trend reversal could encourage greater involvement of traditional finance in cryptocurrencies, avoiding overly restrictive regulations that would limit the operations of banking institutions and investment companies.  

However, the debate remains open: the need for effective regulation clashes with the desire not to hinder innovation. 

The developments of the coming weeks will provide clearer indications on the path that the SEC intends to follow.