SEC Submits Crypto Custody Rule Overhaul to White House

The U.S. Securities and Exchange Commission (SEC) has begun moving toward an update to custody rules that govern how investment advisers and investment companies hold client assets, a change that could directly affect institutional crypto custody.

According to the SEC's regulatory filings, the agency submitted 'Amendments to the Custody Rules' to the White House Office of Information and Regulatory Affairs (OIRA) on August 25 as part of the federal review process. The proposal would then return to the SEC for internal consideration before potentially being released for public comment.

The stated goal is to reduce uncertainty for institutions trying to comply with existing federal securities rules while holding digital assets.