SEC's Crypto Custody Rule Advancing to White House Review

The U.S. Securities and Exchange Commission (SEC) has advanced its proposed rule for crypto asset custody standards to the White House review stage.

Taylor Lindman, senior adviser to the SEC's Crypto Task Force, stated that the proposal aims to reduce friction in leveraging blockchain and holding or trading crypto assets.

The rule would allow broker-dealers to hold non-security crypto assets without separate special registration, as well as recognize state-chartered trust companies as custodians for client assets.

This marks a departure from the custody regulation pursued under former SEC Chair Gary Gensler, which was scrapped after President Donald Trump returned to the White House and new leadership took over.