US SEC Acting Chairman directs staff to re-examine proposed cryptocurrency custody rules

PANews March 18th news, according to The Block, the U.S. Securities and Exchange Commission (SEC) is considering withdrawing a proposal to tighten cryptocurrency custody requirements, the latest move by the acting chairman under the Trump administration. SEC Acting Chairman Mark Uyeda said at the 2025 Investment Management Conference of the Association of Investment Companies held in San Diego on Monday that commenters expressed serious concerns about a rule proposed in February 2023 that requires registered investment advisers to hand over cryptocurrencies to qualified custodians and require these custodians to comply with certain regulations, “In view of these concerns, there may be significant challenges in advancing the original proposal, and therefore, I have asked SEC staff to work closely with the cryptocurrency working group to consider appropriate alternatives”.

Uyeda's speech on Monday focused on the SEC's rulemaking process, including the possibility of withdrawing or re-proposing rules, or postponing compliance dates. The custody rule was proposed by the SEC led by Gary Gensler during the former Biden administration and aims to extend the existing custody rules to include any client assets held by the consultant and add more protections to those assets. Uyeda's move to revisit the rule marks the second time this month requires SEC staff to reconsider its rules. Last week, Uyeda said he had directed the agency staff to review a proposed rule change that would expand the definition of an “exchange” that could include decentralized cryptocurrency projects.