SEC Sends Crypto Custody Rule Draft to White House for Review

The U.S. Securities and Exchange Commission (SEC) has sent its proposed overhaul of crypto custody rules to the Office of Management and Budget for review. The SEC's regulatory agenda lists a proposal target around October 2026, but no legal deadline applies.

The current adviser custody rules cover client funds and securities, not every digital asset. This leaves regulatory uncertainty for crypto custodians and institutional adoption.

The draft was sent on August 25, but it does not change the current law or custody requirements today. The SEC must wait for OMB's Office of Information and Regulatory Affairs to review the draft before publishing it.