The U.S. Securities and Exchange Commission (SEC) has proposed a draft that would make it harder for hedge funds, private equity firms, and pension funds to work with crypto companies. 

The proposal would make it difficult for crypto firms to hold digital assets on their client’s behalf as “qualified custodians,” a designation that allows companies to hold client assets for money managers, Bloomberg reported Tuesday, citing people familiar with the matter. 

A five-member SEC panel will vote on the proposal on Wednesday, deciding whether the proposal proceeds to the next stage. A majority vote will be needed for the rest of the SEC to vote on the proposal officially.