The SEC Just Took a Major Step to Rewrite Crypto Custody Rules

TLDR

• The SEC has sent proposed changes to crypto custody rules to the White House Office of Management and Budget for review
• The changes would clarify how investment advisers and funds can hold crypto assets for clients under federal law
• The proposal has not yet been made public and could be revised before returning to the SEC
• SEC Chair Paul Atkins has led a shift away from enforcement toward formal rulemaking since taking over in 2025
• The move comes as the CLARITY market structure bill remains stalled in the Senate

The SEC is pushing forward with a plan to rewrite the rules around how investment advisers hold crypto for their clients. The proposal was sent on August 25 to the Office of Information and Regulatory Affairs, part of the White House Office of Management and Budget, before it can move forward.

SEC Prepares Crypto Custody Rule Overhaul for Investment Advisers and Funds

According to Bloomberg, the SEC sent a new proposal to the White House Office of Management and Budget on Aug. 25 to clarify the custody framework for crypto assets held by investment advisers and… pic.twitter.com/Kepg1PfMni

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