SEC Sends Crypto Custody Rule Overhaul to White House Review

The U.S. Securities and Exchange Commission (SEC) has sent its proposed overhaul of crypto custody rules to the White House for review, a move that could reshape how investment advisers and registered funds hold digital assets.

The SEC submitted its proposal on August 25, which would modernize digital asset custody rules for investment advisers. The agency said investment advisers have raised questions about holding crypto assets while meeting existing custody requirements.

The proposed changes would cover investment advisers and investment companies under existing federal securities rules, removing certain requirements that regulators consider outdated amid changing market practices.

The SEC has not released the proposal's complete text, so specific changes involving qualified custodians and custody arrangements remain unclear until publication.