The SEC submitted a proposal on Aug. 25 to clarify custody rules for crypto assets held by investment advisers. The rule would eliminate obsolete provisions and could be opened for public comment after White House review.
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The Securities and Exchange Commission submitted a proposal to the White House on Aug. 25 to clarify the custody framework for crypto assets held by investment advisers and investment companies, according to Bloomberg.
The SEC said numerous investment advisers have sought clarification on complying with current rules while managing cryptocurrency holdings. The commission described the rulemaking as an attempt to “clarify the framework for the custody of crypto assets for investment advisers and investment companies.” The proposal would also eliminate provisions the agency considers obsolete.
The full text is not yet public. The Office of Management and Budget can recommend modifications before returning the document to the SEC. Commissioners would then decide whether to publish the proposal for public comment, which would start a formal feedback period.
The rulemaking continues a shift under Chair Paul Atkins, who took over in 2025 and promised to move away from the “regulation through enforcement” approach. The SEC has since dropped several enforcement actions, including against Coinbase, and issued guidance that memecoins are not securities and that some staking activities fall outside securities law.
In 2025, the SEC also unveiled “Regulation Crypto Assets,” a tailored offering framework. Atkins has said he intends to create an innovation exemption to speed up crypto product approvals, though details are pending.
The custody proposal moves forward as the CLARITY market structure bill remains stalled in the Senate. A procedural vote is expected when lawmakers return from the August recess in September.
After the White House review, the SEC will consider whether to release the framework for public comment. No timeline has been set for a commission vote.
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