The U.S. Securities and Exchange Commission (SEC) may revise or cancel the proposed regulations by the Biden administration aimed at imposing stricter standards for managing and holding digital currencies by investment advisors. Mark Uyeda, the acting head of the SEC, announced in a conference on March 17 that the proposal, introduced in February 2023, has faced extensive criticism due to its broad scope. He has instructed SEC staff to explore alternative options, including the possibility of canceling these regulations. These laws were developed during Gary Gensler’s presidency and required investment advisors to hold their clients’ digital currencies with qualified custodians. Gensler had stated at that time that cryptocurrency platforms did not meet the necessary conditions for this role.
