Custody Rules

Definition ∞ Custody rules are regulations or guidelines that dictate how digital assets are held, secured, and managed by custodians. These stipulations are designed to safeguard client assets from loss, theft, or unauthorized access. Adherence to these rules is paramount for entities entrusted with holding cryptocurrencies on behalf of others.
Context ∞ The present discussion around custody rules is largely focused on the implications of new regulatory pronouncements for institutional investors and exchanges. Key debates involve the definition of a qualified custodian within the digital asset space and the requirements for segregated asset holding. Future developments are expected to involve further clarification and potential harmonization of these rules across different jurisdictions, impacting how digital assets are secured.

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→On-Chain Markets

→Federal Framework

→Agency Coordination

SEC Launches Project Crypto to Formalize Digital Asset Securities Regulatory Framework

The SEC's shift to formal rulemaking replaces enforcement-driven uncertainty, mandating a systemic overhaul of token classification and disclosure protocols.

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→Operational Controls

→Custody Rules

→Institutional Adoption

SEC Staff Permits State Trust Companies Digital Asset Custody

The SEC staff's no-action relief operationalizes crypto custody for registered funds, expanding institutional access under rigorous due diligence standards.

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→Enforcement Risk

→No-Action Letter

→Compliance

SEC Staff Permits State Trusts as Qualified Digital Asset Custodians

The Staff's no-action relief provides a critical compliance pathway, enabling SEC-registered investment advisers to utilize state-chartered trust companies as qualified digital asset custodians.

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→Security Tokens

→AML Guidance

→Spot Market Regulation

White House Releases Comprehensive Framework Urging US Regulatory Clarity and Innovation Exemptions

The White House framework mandates a function-based asset taxonomy and regulatory coordination, ending the prior enforcement-only compliance uncertainty.

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→Digital Wallets

→Reporting Obligations

→Prudential Standards

ASIC Classifies Digital Assets as Financial Products, Mandates Licensing Transition

Australia's regulator codified stablecoins and tokenized assets as financial products, requiring immediate AFSL compliance planning and risk mitigation.

→Trust Companies

→Management

→Regulatory Relief

SEC Staff Permits State Trust Companies as Qualified Crypto Asset Custodians

The SEC staff’s custody no-action relief expands the qualified custodian universe, strategically de-risking institutional crypto adoption.

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→Standardized Frameworks

→Trading Systems

→Digital Asset Classification

SEC and CFTC Convene Roundtable to Harmonize Digital Asset Regulation

Regulators initiate a unified framework, signaling a strategic pivot to integrate digital assets into mainstream finance, demanding refined compliance architectures.