SEC seeks a makeover for the Custody Rule (ThinkAdvisor)

The SEC recently sent a plan it stated was to modernize and improve the Custody Rule to the Office of Management and Budget (OMB). The SEC is seeking to amend the rule to accommodate for crypto assets, with investment advisers and investment companies raising questions about how to hold these assets in compliance with current custody requirements. FrontLine Compliance Founder and President Amy Lynch comments that the SEC’s plan is yet another attempt to deregulate markets by allowing for new ways to hold assets in custody as a qualified custodian. She adds that the focus of proposed changes to the rule will be to specify how digital assets can be held at qualified custodians and how the definition of a qualified custodian will change. See ThinkAdvisor (free registration), “SEC Sends Custody Rule Changes to White House for Review”