SEC sends crypto custody rule overhaul to White House for review
The SEC is advancing a proposal to revise custody rules for investment advisers and investment companies, with the goal of giving institutions clearer guidance on holding crypto assets for clients while complying with federal securities laws. The proposal was sent to the White House budget office for review before possible SEC approval and publication for public comment. The planned changes could update rules under the Investment Advisers Act and Investment Company Act, covering how advisers and funds safeguard client assets, including digital assets. The SEC says the revisions are meant to reduce uncertainty around crypto custody. The move fits a broader shift toward formal crypto rulemaking under SEC Chair Paul Atkins, replacing a prior enforcement-heavy approach. The agency has also dropped several crypto cases in 2025, including the lawsuit against Coinbase, as it works on a more defined regulatory framework.
