The acting chairman of the United States Securities and Exchange Commission (SEC), Mark Uyeda, has asked the staff to consider release a proposal to biden-Aka to tighten digital assets on custody, signaling Another movement against President Trump’s pro-crypto agenda.
On March 17, in preparation Notes To a conference for the investment industry in San Diego, Uyeda said that commentators had “expressed significant concerns about the wide range of the proposed protection rule.”
He added that “given such concern, there may be significant challenges to continue with the original proposal. As such, I have asked the SEC staff to work closely with the crypto to consider appropriate alternatives, including its withdrawal.”
Registered investment advisors are covered by a “custody rule” that requires them to maintain assets with a qualified guardian, such as a bank or broker. Under former chairman Gary Genser and during the administration of former President Joe Biden, Sec proposed extend these standards to digital assets, which means most digital asset exchanges and Wallets would be disqualified from offering custody solutions. Concerned also aroused that the proposed rule would further limit the number banks that are willing to do business with the sector.
Yet, that approved a vote from the SEC Commissioners In February 2023, with 4-1 in favor of the new rule. “Crypto Mom“Hester Peirce was the only different vote and at that time said that some of the requirements, such as a written agreement between guardians and advisers,” can be difficult for advisors and costly for customers. Small advisors may have a particularly difficult time to comply with these requirements. “
She further noted that “by insisting on an asset neutral strategy for custody, we were able to leave investors in crypto assets that are more vulnerable to theft or fraud, not less.”
Peirce is now head of SEC’s Newly formed “Crypto Task Force,” as recently announced A series of round table to discuss important interesting areas for regulating digital assets.
Uyeda changes the formula
Uyeda’s decision to go through the custody rule is only the latest in a series of movements aimed at softening SEC’s attitude to the digital asset space since he Took over From Gensler, which expired in January.
One of Uyeda’s first acts was to remove The agency’s controversial staff accounting bulletin 121 (SAB 121).
SAB 121 Where Published In March 2022, as a political guideline, which describes how virtual asset service providers (VASP) must manage accounting for digital assets and set additional capital requirements on banks that want to handle digital assets for customers. It contained strict guidelines for institutions that want to custody’s digital assets, including the requirement that VASP’s maintain their users’ digital asset holdings on their own balance sheets.
January 23 – rarely three days after being announced as Gensler’s temporary successors – Uyeda Published A new personnel accounting ball, SAB 122, revoked the previous guidance.
Last March 10, at 2025 annual Washington Conference for the Institute of International Bankers, Uyeda said he had had asked the SEC staff “For alternatives to abandon” part of a proposed rule change that may force certain digital asset companies to register with the controller as exchanges.
Both measures indicate a change in the course for Secs during the Trump administration, from the regulation-enforcement method led by Gensler and supported by former President Biden to a more industry-friendly Sec that has arisen since January.
In December, Trump chose Former Sec Commissioner Paul Atkins To take over as permanent Sec -Chair and a Senate Negotiation on the Appointment is reportedly Meanwhile, Uyeda, which certainly makes the best of its limited government as head of Sec.
Look: Break solutions on blockchain control barriers
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