Additionally, the SEC is reviewing a rule requiring mutual funds and exchange-traded funds to report their portfolio holdings monthly instead of quarterly, a regulation adopted in August 2023 to enhance transparency. Industry feedback has raised concerns, particularly about the role of artificial intelligence in trading strategies. These developments indicate a broader shift in SEC policy under the Trump administration, with a more industry-friendly stance toward digital assets and financial institutions. The SEC has already rescinded accounting guidance for crypto firms, dropped enforcement actions against industry players, and established a crypto task force to assess regulatory priorities.
Key takeaways:
- The SEC is considering reversing a proposed Biden-era rule that would impose stricter custody requirements for investment advisors handling cryptocurrencies.
- Acting SEC Chair Mark Uyeda cited concerns over the rule's broad scope and compliance challenges as reasons for the potential reversal.
- The SEC is also reviewing a rule requiring mutual funds and ETFs to report portfolio holdings monthly, with industry feedback highlighting concerns about AI's role in trading strategies.
- These regulatory revisions indicate a shift toward a more industry-friendly stance under the Trump administration, particularly regarding digital assets and financial institutions.