According to @VanessaGrellet_, the SEC plans to modernize custody rules for intermediaries, providing explicit support for self-hosted wallets and staking. The updated regulations address criticism of SAB 121 and special-purpose broker-dealer rules, which previously restricted custodial options. This regulatory change is considered a significant win for self-custody and DeFi users, potentially increasing user confidence and trading activity in decentralized platforms (Source: @VanessaGrellet_).

According to Eleanor Terrett, Mike Ring, CEO of Old Glory Bank, has claimed that regulatory bodies such as the FDIC and SEC coordinated efforts to suppress banks acting as crypto custodians, using directives 'FIL-16-2022' and 'SAB 121' to curb demand for deposit services. This statement highlights potential regulatory risks in the crypto banking sector that traders should monitor closely.