The U.S. Securities and Exchange Commission has submitted proposed amendments to its custody rules for investment advisers and investment companies to the White House for review, marking a step toward clearer regulatory guidance for digital asset holdings.
The proposed changes, forwarded to the Office of Information and Regulatory Affairs on Aug. 25, would revise existing rules or introduce new requirements under the Investment Advisers Act and Investment Company Act to address how firms hold client assets, including cryptocurrencies. The SEC has not yet released the draft rule publicly, and the White House Office of Management and Budget may request modifications before returning it to the commission for potential public comment.
The regulator stated the amendments are intended to resolve ambiguity around crypto custody practices while maintaining compliance with federal securities regulations. The proposal follows a broader shift in the SEC’s approach to digital assets under Chair Paul Atkins, who has emphasized formal rulemaking over enforcement actions.
Since 2025, the commission has dismissed several high-profile crypto-related lawsuits, including its case against Coinbase, signaling a pivot toward policy development. The move aligns with the Trump administration’s digital asset agenda, though the related CLARITY market structure bill remains stalled in the Senate, with a cloture vote expected after lawmakers return from recess in September.
The SEC’s regulatory agenda indicates the agency is evaluating changes to custody rules to explicitly cover crypto assets, though further revisions may occur during the White House review process.
