The Securities and Exchange Commission has sent a proposal to the White House aiming to “clarify the framework for the custody of crypto assets” for investment advisers and companies.
In a rule change sent Tuesday, the regulator said it wanted to “improve and modernize the regulations” surrounding custody for the crypto space.
The proposal comes after a vote was delayed on the long-awaited Clarity Act. Despite the delay, regulators like the SEC and Commodity Futures Trading Commission have said they will still proceed with trying to shape crypto policy.
“This rulemaking would clarify the framework for the custody of crypto assets for investment adviser and investment companies, as well as make other modernizations needed to remove burdens from certain outdated provisions that are no longer needed to provide investor protection given the evolution in the markets and security trading and holding practices,” the proposal read.
Pro-crypto lawmakers had hoped to pass the Clarity Act before Congress broke for August recess, but the vote slipped to September after Democrats balked at the latest draft.
Some Republican senators — like Senator Cynthia Lummis — accused some of deliberately holding it back.
Still, pro-crypto regulators want to press ahead. CFTC Chairman Michael Selig has said he will proceed with rulemaking whether or not the Clarity Act is enacted, aiming to finalise rules before the administration’s term is out.
And earlier this month, the SEC proposed its own framework to allow token issuers to raise money in the U.S. without falling foul of securities laws.
President Donald Trump campaigned on a ticket to help the crypto industry and received major backing from Silicon Valley entrepreneurs. Since taking office, regulators have taken a remarkably different approach to watchdogging the digital asset space.
The president last week urged lawmakers to get the Clarity Act over the line. SEC Chair Paul Atkins has said he is “committed to supporting Congress in advancing” the bill.