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SEC custody rule rewrite for crypto enters White House review
The SEC says the planned 2026 framework would clarify how advisers and investment companies can custody crypto assets under existing Commission requirements, after a separate 2023 proposal was withdrawn.
The SEC’s proposed rewrite of custody rules for investment advisers and investment companies has entered White House review, according to The Defiant. The agency submitted the new crypto focused framework for review on Aug. 25, after it withdrew a separate 2023 safeguarding proposal.
The SEC’s 2026 regulatory agenda says the rule would clarify how advisers and investment companies may custody crypto assets while meeting SEC requirements. It also indicates the agency plans to remove burdens from custody provisions it considers outdated, covering both adviser client assets and fund assets.
Under current adviser custody rules, advisers generally must use a qualified custodian and keep client funds and securities separate in client accounts, or in accounts held by the adviser as agent or trustee. The agenda notes advisers and investment companies have raised questions about how to hold crypto assets in compliance with those custody requirements.
The Defiant reports that OIRA’s review entry, identified as RIN 3235-AN46, lists the proposal at the proposed rule stage with an Aug. 25 date, but provides no draft rule text. The outlet also notes the earlier February 2023 proposal would have expanded custody coverage to all client assets, including crypto, and added segregation and custodian insolvency protections before the SEC withdrew it in June 2025.