SEC Revisits Crypto Custody Rules Amid Rising Institutional Demand
The Securities and Exchange Commission (SEC) is revisiting the question of who should safeguard customer cryptocurrency as part of its proposal to update the Custody Rule.
On August 25th, the SEC submitted proposed amendments to the Custody Rule to the Office of Information and Regulatory Affairs (OIRA), which will review it as an economically significant regulation.
The proposed rulemaking has not been released publicly yet, but it's expected to be published by October 2026. Once published, there will be a minimum of 60 days for members of the public to provide comments on the proposed rules.
Despite some guidance in the proposal, industry participants will still need to wait several years before compliance becomes mandatory, as both analysis and a second commission vote are required before these proposed amendments can take effect.