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A bipartisan group of lawmakers in the House of Representatives has proposed a bill to address the high costs associated with crypto custody, which have hindered the growth of the industry. Banks and financial institutions have been hesitant to offer crypto custody services due to guidelines from the US Securities and Exchange Commission (SEC) that make it financially burdensome. The proposed Uniform Treatment of Custodial Assets Act seeks to overturn these SEC guidelines and align the treatment of custodied crypto assets with traditional assets. The bill aims to support the digital assets industry in the United States, enhance American competitiveness, and afford appropriate protections for investors. The SEC guidelines, issued in 2022, have caused concerns and confusion within the industry, leading many banks and firms to delay or abandon their plans to offer crypto custody services. The bill aims to create a more favorable regulatory environment and prevent the industry from seeking more favorable conditions overseas. By fostering a choice of strong custodians, the bill aims to establish a resilient market structure.