The United States Securities and Exchange Commission (SEC) plans to propose new rules that would toughen the requirements for cryptocurrency firms to become qualified custodians for institutional fund managers.

Although the draft proposal will be submitted on Wednesday, the affected area remains unclear, Bloomberg reported, citing people familiar with the matter.

According to the report, the SEC intends to submit a draft proposal with rule changes that would make it difficult for crypto firms to be qualified custodians for money managers.

The new rules would affect hedge funds, private equity firms, some venture capital firms, and pension funds, as they are required to secure clients’ assets with qualified custodians.

If approved, the affected entities will need to move their customers’ assets to other custodians. They may also undergo audits on their custodial relationships and other ramifications.