SEC Proposes Custody Plan for Non-Security Crypto Assets

The Securities and Exchange Commission (SEC) has proposed a custody plan that would allow broker-dealers to carry non-security crypto assets without special registration. According to SEC Crypto Task Force Chief Counsel Taylor Lindman, the rule is currently under review by the Office of Management and Budget (OMB). The proposal aims to clarify the handling of client assets for investment advisers, including state-chartered trusts as qualified crypto custodians.

Lindman framed the work as a way to fit non-security crypto assets into a framework that has been built over time. He noted that existing measures cover the gap until the rule lands, including a September 2025 SEC guidance allowing investment advisers to park customer assets with state-chartered trusts and a December staff statement steering broker-dealers on how to handle crypto custody pending final rules.

The OMB review is the next step before the SEC can formally propose the rule and open a public comment window. Lindman emphasized that some of the groundwork, including foundation-laying, may be seen as 'boring' but is essential for progress in the crypto space.