SEC Proposes Custody Rules for Non-Security Crypto Assets
The US Securities and Exchange Commission (SEC) is making progress on its crypto agenda, with a proposal for custody rules currently under White House review. According to Taylor Lindman, chief counsel of the SEC's Crypto Task Force, the goal is to allow broker-dealers and investment firms to hold non-security crypto assets without needing special registration.
The proposed rule aims to 'assimilate existing securities intermediaries' into a world where they feel comfortable using blockchain and transacting with crypto assets. Lindman cited the agency's staff statement in December as an interim approach for broker-dealers, and referenced its move in September 2025 to allow investment advisers to park customer assets with state-chartered trusts as qualified crypto custodians.
Lindman characterized the SEC's work on crypto regulation as 'foundation laying,' saying that it's taking a unique asset and placing it within a framework that can be built upon. He acknowledged that this process may seem slow or uneventful, but emphasized the importance of meeting the market where it is at.