The SEC's proposed crypto custody rules would let advisers self-custody client crypto assets only when no qualified custodian will hold them, and only if the adviser alone holds the keys. They would also make state trust companies qualified custodians and update the traditional custody rules with no transition period.
The SEC’s proposed “Regulation Crypto Assets” would establish tailored exemptions, an investment contract safe harbor, and broad state preemption for qualifying crypto asset offerings.
DeFi vaults are facing growing regulatory scrutiny as the SEC examines whether their structures and operators may trigger registration requirements under federal securities, commodities, and financial laws.
Commissioner Hester Peirce’s latest statement shifts the crypto regulatory focus from tokens to management, outlining how discretion in DeFi vaults and lending strategies can trigger securities law obligations.
Illinois’ new Digital Asset Privilege Tax Act would tax crypto transactions at 0.2% of asset value starting 2027, raising compliance, valuation, sourcing, and rulemaking challenges while leaving room for changes.
CLARITY’s Title V introduces a regulatory framework for AI-powered financial agents, creating pathways for innovation through a Micro-Innovation Sandbox, automated compliance, and clearer rules for emerging on-chain technologies.
CLARITY’s overlooked §105(b)(2) creates a two-track crypto regime by grandfathering certain exchange-traded-product tokens into automatic non-security status, giving early-listed digital assets a major regulatory and market advantage.
CLARITY’s capstone post makes the core point that the bill is a foundation, not a finished framework: it meaningfully restructures U.S. digital-asset regulation, but leaves major questions on tax, ERISA, state law, cross-border treatment, CFTC jurisdiction, and agency rulemaking capacity unresolved.
CLARITY’s §305 would let stablecoin issuers and digital-asset service providers place temporary holds on suspicious transactions, creating a pre-seizure freeze framework for crypto that parallels bank fraud and AML hold authorities.
CLARITY’s §307 would block Treasury from reviving the 2020 self-hosted wallet reporting proposal by barring routine collection of non-customer counterparty PII, while still preserving sanctions enforcement, customer-side compliance, and broader BSA authority.
CLARITY’s §505 would codify a simple rule: tokenizing a security does not change its legal character, preserving full securities-law treatment while letting the SEC adapt only the mechanics of compliance for digital assets.
The Illinois Blockchain Association has submitted a formal comment letter to the IL Department of Financial and Professional Regulation (IDFPR) on the proposed rules implementing the Digital Assets and Consumer Protection Act (DACPA), published as new Part 1031 of Title 38 of the Illinois Administrative Code.
