SEC Sends Loosened Crypto Custody Rule to White House

The Securities and Exchange Commission (SEC) has sent its rewritten crypto custody rule to the White House for review. The proposal, titled 'Amendments to the Custody Rules,' was filed on August 25 and is expected to loosen the standards for holding client crypto assets.

The SEC's plan to relax crypto custody duties reverses a trend set by former Chair Gary Gensler in 2023. His Safeguarding Rule would have widened custody responsibilities, but it was withdrawn in June 2025.

Crypto industry players such as Andreessen Horowitz and Delphi Ventures have been pushing for modernized custody rules. They are seeking to use multi-signature and multi-party computation (MPC) wallets to split key control over assets.