SEC sends crypto custody rule overhaul to White House for review
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
The US Securities and Exchange Commission (SEC) has sent a proposed overhaul of custody rules for investment advisers and companies to the White House’s Office of Information and Regulatory Affairs (OIRA) for review. The proposed amendments aim to clarify how institutions can hold crypto assets for clients while complying with federal securities laws. The proposal is not yet public and will undergo further review and a potential SEC vote before being released for public comment.
Why it matters
The SEC intends the changes to resolve existing uncertainty about how investment advisers and funds can custody crypto assets under current regulations. This development is part of the SEC’s broader effort to shift from enforcement actions to formal rulemaking in the crypto space under Chair Paul Atkins, potentially providing clearer regulatory guidance to institutions.
Key context
The reform relates to rules under the Investment Advisers Act and Investment Company Act covering how advisers and funds hold client assets, including crypto. The proposal aligns with the SEC’s pivot away from aggressive enforcement toward crafting transparent rules following the dismissal of several major crypto cases in 2025. This initiative continues amid stalled legislation, such as the CLARITY market structure bill pending Senate action.
Key numbers and entities
US Securities and Exchange Commission (SEC), Office of Information and Regulatory Affairs (OIRA), White House Office of Management and Budget, Paul Atkins (SEC Chair, 2025–), Coinbase (involved in a dismissed lawsuit), CLARITY market structure bill. No numerical data provided.
What remains unclear
Details of the proposed custody rule amendments have not been disclosed publicly and it remains uncertain what specific changes will be made or how OIRA and the SEC may alter the proposal during review. The timeline for public release and comment is also unspecified.