THE US SEC HAS SUBMITTED TO THE WHITE HOUSE A NEW CODE OF ENCRYPTION

ON 26 AUGUST, BLOOMBERG REPORTED THAT THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION (SEC) HAD SUBMITTED TO THE WHITE HOUSE OFFICE OF MANAGEMENT AND BUDGET (OMB) A NEW REGULATION ON THE HOLDING OF DIGITAL ASSETS OF CLIENTS BY INVESTMENT ADVISERS. THE RULE PROPOSES “TO CLARIFY THE FRAMEWORK WITHIN WHICH INVESTMENT ADVISERS AND INVESTMENT COMPANIES HOST ENCRYPTED ASSETS”, TO RESPOND TO QUERIES FROM AGENCIES ON HOW TO COMPLY WITH THE HOSTING OF DIGITAL ASSETS, AND TO DELETE EXISTING HOSTING REQUIREMENTS THAT ARE PARTIALLY CONSIDERED “OBSOLETE” DUE TO MARKET EVOLUTION AND CURRENT TRANSACTIONS, HOSTING PRACTICES. THE PROPOSAL IS SEEN AS A STEP TOWARDS THE CURRENT GOVERNMENT ' S ENCRYPTION AGENDA BY THE FINANCIAL REGULATORY AUTHORITY, WHILE THE RELEVANT LEGISLATION REMAINS IN THE SENATE, AND WILL NOT ENTER INTO FORCE UNTIL IT HAS BEEN REVIEWED BY OMB, A VOTE BY THE SEC COMMISSIONER AND A PUBLIC CONSULTATION。