SEC proposes rules to ease crypto custody for funds and advisers
The US market regulator has put forward new rules that would make it simpler for investment advisers and regulated funds to hold crypto for clients.
By BBCorp
What happened
The US Securities and Exchange Commission has proposed new rules aimed at making it easier for investment advisers and regulated funds to hold cryptocurrencies on behalf of their clients.
The measure is at the proposal stage, and concerns how such crypto holdings may be kept by these regulated entities for client accounts.
Why it matters
Rules on how regulated managers may custody an asset shape which institutions can hold it and through which vehicles. Changes at the proposal stage are often read by market participants as a signal about the regulatory direction for the asset class, and that reading alone can move trading activity and volatility in crypto.
Crypto sentiment can also spill over into listed companies tied to digital assets, and therefore into equity indices with exposure to that sector. Regulatory news of this kind typically has little direct bearing on currencies or commodities, though it can add to broader risk appetite shifts.
What to watch
Further detail from the SEC on the proposed rules, including the steps that follow a proposal before any rules take effect.
Crypto
US stocks