Initially introduced in early 2023, the rule aimed to ensure digital assets were stored with qualified custodians meeting specific legal standards. However, strong industry opposition has led the agency to revisit its approach.<\/p>\n
Speaking at a financial conference in San Diego, Acting SEC Chairman Mark Uyeda acknowledged concerns from industry participants, suggesting that the original plan might be difficult to implement. He has directed SEC staff to collaborate with the crypto task force to explore alternative solutions.<\/p>\n
The rule, first introduced during Gary Gensler\u2019s tenure, was designed to expand existing custody regulations to cover crypto. Critics, however, argue that the proposal would limit banking options for crypto firms and make custody services harder to access.<\/p>\n