Catenaa, Saturday, March 22, 2025- The U.S. Securities and Exchange Commission (SEC) is reconsidering a proposed rule that would tighten cryptocurrency custody requirements, marking a shift in approach under the Trump administration.
SEC Acting Chair Mark Uyeda on Monday directed agency staff to reassess the custody rule, originally introduced under former Chair Gary Gensler during the Biden administration. The rule would have required registered investment advisers to store crypto assets with qualified custodians meeting stricter standards.
“Given significant concerns, there may be challenges to proceeding with the original proposal,” Uyeda said at the Investment Company Institute’s conference in San Diego. He instructed SEC staff to explore alternative regulatory approaches with the agency’s crypto task force.
The move follows mounting pressure from Congressional Republicans, crypto firms and financial institutions that opposed the rule, citing concerns it could limit banking access for the crypto sector. The American Bankers Association previously warned it could materially impact their business.
Uyeda’s directive marks the second time this month that he has ordered the SEC to reconsider regulations. Last week, he asked the agency to review a proposed expansion of the “exchange” definition, which could affect decentralized finance projects.
The SEC has swiftly altered its stance on crypto policy since Trump took office, rolling back key enforcement actions and forming a dedicated crypto task force. The task force’s first roundtable discussion on defining securities status is set for Friday.
