The U.S. Securities and Exchange Commission (SEC) is advancing plans to revise custody rules for investment advisers and investment companies, potentially providing institutions with more clarity on how they can hold clients' crypto assets while complying with federal securities market regulations.
The proposed rule was sent on August 25 to the Office of Information and Regulatory Affairs (OIRA), part of the White House Office of Management and Budget, for review before it can return to the SEC and potentially be released for public comment.
The U.S. Securities and Exchange Commission (SEC) sent "Amendments to Asset Custody Rules" to OIRA. Source: Reginfo.gov
According to the SEC's regulatory agenda, the agency is considering changes to existing rules or introducing new ones under the Investment Advisers Act and the Investment Company Act. The changes will address how investment advisers and funds hold client assets, including crypto assets.
The regulator stated that the changes aim to resolve uncertainty about how companies can hold clients' crypto assets while adhering to the commission's rules. The proposal has not been published yet, and the White House Office of Management and Budget may request changes before it is returned to the SEC. The commission will then vote on whether to publish the proposal for public comment.
As Bloomberg reported, the proposed rule is part of the agency's broader efforts to advance the Trump administration's digital asset agenda while the CLARITY Act on market structure remains stalled in the Senate. A cloture vote on the bill is expected in September after lawmakers return from their August recess.
Related: CFTC, Following SEC, Abandons 'No-Admit' Policy in Settlement Agreements
SEC Shifts from Cryptocurrency Enforcement to Rulemaking
Since Paul Atkins assumed the role of SEC Chairman in 2025, the agency has adopted a more crypto-friendly approach, shifting its focus from enforcement actions to developing clearer rules for the industry. Atkins pledged to end the agency's previous approach of "regulation by enforcement" and stated that policy development should instead occur through formal rulemaking.
This shift has also been reflected in enforcement activity. In 2025, the SEC dropped several cases against major crypto companies, including the lawsuit against Coinbase, as the agency revised its approach to digital assets.
Magazine: Proposed SEC Crypto Rules Unlikely to Spark a New ICO Boom
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