SECโ€™s Latest Rule Update Omits Crypto Custody Guidance

SEC's Latest Rule Update Omits Crypto Custody Guidance

The SECโ€™s Division of Investment Management has not released a no-action letter titled โ€˜Out of the Gray Zoneโ€™ concerning crypto custody, as verified by their official sources till September 2025.

This absence of formal guidance leaves the crypto market uncertain, with no indications of immediate changes affecting major cryptocurrencies or regulated custodians following recent rule updates.

The SECโ€™s recent rule updates indicate shifts in regulatory oversight but omit direct guidance on cryptocurrency custody.

Despite growing interest in digital assets, the absence of specific SEC guidance on crypto custody leaves market participants anticipating future communications that might clarify custodial protocols for cryptocurrencies.

SEC Skips Direct Crypto Custody Updates in Rule Changes

Recent SEC activity indicates shifts in regulatory oversight but no direct crypto custody updates. The Division of Investment Management, led by Natasha J. Greiner, focuses on new rule adoptions affecting investment management processes and fund regulations. Key figures like Paul S. Atkins and Natasha J. Greiner drive these changes, signaling a strategic direction for investment management. However, no direct crypto-specific guidance has been issued in the latest updates ending September 30, 2025.

Paul S. Atkins, Chairman, SEC, โ€œStatements by SEC Chairman Paul S. Atkins and by Division of Investment Management Director Natasha J. Greiner indicate that the SEC staff will no longer require retail closed-end funds to limit their investments in private funds โ€ฆ to 15% of their net assetsโ€ โ€“ SEC Newsroom

Financial Markets Steady Amid Lack of Crypto Guidance

No current evidence shows the SEC has issued a specific no-action letter on crypto custody. Financial markets remain unaffected, with no observable changes in digital asset flows or staking metrics from the data reviewed. Industry experts highlight the potential implications for future regulatory approaches. Past trends showed reliefs affecting assets like ETH and BTC, but no such guidance has been noted in the present context.

Absence of New Crypto Custody Framework in Latest SEC Rules

Previously, the SEC provided no-action reliefs on digital and DeFi assets. However, a similar crypto custody framework is absent in the latest updates, differing from earlier crypto governance protocols. Experts from Kanalcoin suggest future regulatory clarity may evolve based on ongoing discussions. Market participants await formal communications to understand prospective effects on digital asset custodianship.

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