SEC Sends Crypto Custody Rules to White House for Review

The US Securities and Exchange Commission (SEC) has sent proposed rules for crypto custody to the White House for review. The proposal, which is not yet public, aims to clarify how investment advisers and funds hold client assets, including cryptocurrency.

The SEC's move comes as Chair Paul Atkins pushes the agency towards formal crypto rulemaking rather than enforcement-led regulation. The proposed rules could change existing guidelines under the Investment Advisers Act and Investment Company Act.

The proposal was sent to the Office of Information and Regulatory Affairs (OIRA) on August 25, ahead of possible public consultation. OIRA can request changes before sending it back to the SEC, which would then need to vote before releasing the proposal for public comment.