The US Securities and Exchange Commission (SEC) is reconsidering a proposed rule that would have changed how investment advisers manage cryptocurrency holdings.
The rule, introduced in 2023 under former chair Gary Gensler, sought to require advisers to store client crypto assets with “qualified custodians”, such as banks or trust companies.
It was meant to strengthen investor protections but was widely criticized for being too restrictive.
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Acting SEC chair Mark Uyeda recently acknowledged these concerns. Speaking at an investment conference in San Diego, he pointed out that the rule’s scope had raised objections. He stated, “Given such concern, there may be significant challenges to proceeding with the original proposal”.
Uyeda has directed SEC staff to work with the agency’s crypto task force to explore alternatives, including the possibility of scrapping the rule altogether.
He has also paused enforcement of certain crypto-related rules and is reconsidering how the SEC defines “exchanges”.
This is not the only policy from Gensler’s tenure under review. Some of these policies had led to legal challenges, including a lawsuit filed by 18 states before Gensler’s departure.
Meanwhile, the SEC recently postponed decisions on ETFs for XRP
$2.25
, Solana
$123.23
, Litecoin
$88.38
, and Dogecoin
$0.1659
, with the next deadline set for May. Why? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
