SEC Sends New Crypto Custody Rules to White House for Review

The Securities and Exchange Commission is moving ahead with plans to update custody rules for investment advisers and fund managers, a change that could give financial institutions clearer guidance on how they can legally hold crypto assets for clients. The proposed rule was sent to the White House Office of Information and Regulatory Affairs on August 25 for review before it can return to the SEC and potentially open for public comment.

What the Changes Could Cover

According to the SEC’s regulatory agenda, the agency is looking at revising existing rules or introducing new ones under the Investment Advisers Act and Investment Company Act, specifically addressing how firms hold client assets, including cryptocurrency. The regulator says the goal is to remove uncertainty that has made compliance difficult for companies handling digital assets. The proposal itself hasn’t been made public yet, and the White House can request edits before sending it back for a commission vote.

Part of a Broader Regulatory Shift

This move fits into the SEC’s larger push to advance a friendlier digital asset framework, especially as a separate market structure bill remains stalled in the Senate ahead of an expected vote in September. Since Paul Atkins took over as SEC chair in 2025, the agency has shifted away from enforcement-heavy tactics toward formal rulemaking, a change that also led to the dismissal of several major cases against crypto companies, including one against Coinbase.