SEC Submits Revised Crypto Custody Rule with Loosening Measures

The Securities and Exchange Commission (SEC) has sent its proposed revisions to the crypto custody rule to the White House for review. The agency aims to loosen custody duties, allowing investment advisers to hold client cryptocurrency in a more flexible manner.

The proposal, dubbed 'Amendments to the Custody Rules,' was filed with the Office of Management and Budget (OMB) on August 25. According to OMB records, the rule carries two labels: economically significant, indicating an impact of at least $100 million annually, and a deregulatory tag under Executive Order 14192.

This order, signed by President Donald Trump in January 2025, instructs agencies to repeal ten existing rules for every new one they create. The SEC's move suggests it plans to roll back rather than tighten custody requirements.