SEC Readies New Crypto Custody Rules Amid Ongoing Regulatory Efforts
The US Securities and Exchange Commission (SEC) is working on a new rule to clarify crypto custody standards for broker-dealers and investment advisers. The proposal aims to define how broker-dealers can hold non-security crypto assets without separate registration and which institutions investment advisers may use to lawfully custody client assets.
Taylor Lindemann, senior adviser to the SEC's crypto task force, stated that the broad direction is 'to make sure traditional securities intermediaries and market participants can use blockchain and hold and trade crypto assets without friction.' The framework would cover both crypto assets that qualify as securities and those that do not.
The proposal will be formally released after clearing review by the White House Office of Management and Budget. It will then go through a public comment process, building on previous interim guidance issued in December 2025 and September 2025. The SEC's efforts are part of its ongoing work to build a regulatory framework for digital assets.