SEC Advances Crypto Custody Rule Changes for White House Review

The U.S. Securities and Exchange Commission (SEC) is moving forward with proposed changes to custody rules for investment advisers handling digital assets, forwarding the draft to the White House for review.

This marks another step in the agency's broader effort to reshape crypto regulation under Chair Paul Atkins, who has been pursuing a wider regulatory overhaul for digital assets over the past year.

The SEC says investment advisers have raised questions about how they can hold crypto assets for clients while remaining in compliance with existing custody requirements. The regulator aims to clarify the framework for crypto asset custody and modernize outdated provisions that no longer need to remain in place due to shifts in markets and trading practices.