The Securities and Exchange Commission submitted proposed rules on digital asset custody to the White House for review on Aug. 25, clearing a procedural step that allows the agency to formalize custody standards for investment advisers managing crypto for clients.
The rulemaking removes custody provisions the SEC determined no longer provide necessary investor protections given structural changes in digital asset markets and trading infrastructure. The move directly addresses compliance questions investment advisers have raised about holding crypto assets for clients—signaling concrete demand from traditional finance for clearer regulatory guidance.
Chairman Paul Atkins has prioritized modernizing the agency's regulatory framework around digital assets, aligning with the Trump administration's stated crypto policy direction. The Office of Information and Regulatory Affairs, a division of the Office of Management and Budget, is currently reviewing the proposal. Details remain under review and could shift before official publication.
If approved, the SEC will open a public comment period lasting at least 60 days before drafting a final rule for a commission vote. The structural signal here is not the timeline but the explicit removal of outdated protections—indicating the SEC is repositioning custody standards around current market realities rather than legacy frameworks.
