SEC Moves Forward with Crypto Custody Proposal Amid Broader Digital Asset Agenda

The U.S. Securities and Exchange Commission (SEC) is moving forward with its proposal on crypto custody, which aims to clarify how regulated firms can handle digital assets within existing securities rules.

The proposal, now under review by the White House Office of Management and Budget, is expected to provide investment advisers with clearer guidance on holding client crypto assets, including approval for use of state-chartered trusts as qualified custodians after September 2025.

According to SEC's Crypto Task Force chief counsel Taylor Lindman, the agency's custody proposal is designed to help the market understand how a broker-dealer can carry a non-security crypto asset without special registration, while also giving investment advisers clearer guidance on where client assets may be held.

Lindman notes that the broader digital asset agenda includes new rules for crypto offerings and tokenized securities, which seek to integrate blockchain and digital assets into regulated markets under crypto-friendly leadership.