PANews reported on October 1st that the New York State Department of Financial Services (NYDFS) has released updated guidance for licensed cryptocurrency custodial entities (VCEs). The core requirement of the guidance is that the custody structure must ensure that the beneficial ownership of digital assets always belongs to the customer, and in particular, customer assets must be protected in the event of the custodial entity's bankruptcy. The NYDFS stated that this update was made in response to the surge in demand for virtual asset custody from both institutional and retail clients, as well as the increasingly complex "sub-custodian" relationships within the industry. The new guidelines explicitly prohibit custodians from using client assets for activities that could compromise client ownership, such as rehypothecation or unsecured lending, without explicit permission and informed consent. Furthermore, the new guidelines impose stricter due diligence, contractual terms, and disclosure requirements on custodians' use of sub-custodians. The guidance, which is intended to provide greater clarity and confidence to clients and prompt licensed entities to review their custody structures and client agreements, is now effective in 2025 and replaces the previous version from January 2023.PANews reported on October 1st that the New York State Department of Financial Services (NYDFS) has released updated guidance for licensed cryptocurrency custodial entities (VCEs). The core requirement of the guidance is that the custody structure must ensure that the beneficial ownership of digital assets always belongs to the customer, and in particular, customer assets must be protected in the event of the custodial entity's bankruptcy. The NYDFS stated that this update was made in response to the surge in demand for virtual asset custody from both institutional and retail clients, as well as the increasingly complex "sub-custodian" relationships within the industry. The new guidelines explicitly prohibit custodians from using client assets for activities that could compromise client ownership, such as rehypothecation or unsecured lending, without explicit permission and informed consent. Furthermore, the new guidelines impose stricter due diligence, contractual terms, and disclosure requirements on custodians' use of sub-custodians. The guidance, which is intended to provide greater clarity and confidence to clients and prompt licensed entities to review their custody structures and client agreements, is now effective in 2025 and replaces the previous version from January 2023.

                                                                               Lawmakers in the US House of Representatives and Senate met with cryptocurrency industry leaders in three separate roundtable events this week.                     Members of the US Congress met with key figures in the cryptocurrency industry to discuss issues and potential laws related to the establishment of a strategic Bitcoin reserve and a market structure.On Tuesday, a group of lawmakers that included Alaska Representative Nick Begich and Ohio Senator Bernie Moreno met with Strategy co-founder Michael Saylor and others in a roundtable event regarding the BITCOIN Act, a bill to establish a strategic Bitcoin (BTC) reserve. The discussion was hosted by the advocacy organization Digital Chamber and its affiliates, the Digital Power Network and Bitcoin Treasury Council.“Legislators and the executives at yesterday’s roundtable agree, there is a need [for] a Strategic Bitcoin Reserve law to ensure its longevity for America’s financial future,” Hailey Miller, director of government affairs and public policy at Digital Power Network, told Cointelegraph. “Most attendees are looking for next steps, which may mean including the SBR within the broader policy frameworks already advancing.“Read more