The U.S. Securities and Exchange Commission has revived a crypto custody rulemaking that did not advance under the prior administration and has now sent the proposed measure to the White House Office of Management and Budget for review, according to an Aug. 26 report by CoinDesk. The proposal is meant to clarify how investment advisers and investment companies should custody crypto assets on behalf of clients. It would also remove older provisions that the SEC believes no longer provide the investor protections required after changes in digital asset markets and trading practices.
The rule has been listed under the deregulation agenda tied to Executive Order 14192, signed by Donald Trump in January 2025, and is described in the source as part of a looser regulatory path. It also fits into SEC Chair Paul Atkins’ push to modernize the agency’s rulebook. Specific provisions have not yet been released and may still change before publication. Once the OMB review is complete, the SEC is expected to move toward a formal proposal. The agency currently has October marked for that proposal and the start of a public comment process, which typically runs for at least 60 days before a final rule is drafted and sent to the commission for a vote.
The U.S. Securities and Exchange Commission has restarted a crypto custody rule that failed to advance under the previous administration. According to CoinDesk’s Aug. 26 report, the SEC has sent a proposed new rule on crypto asset custody to the White House Office of Management and Budget, or OMB, for review, setting up the next step toward a formal proposal.
Rule would clarify custody standards for advisers and investment companies
The report said the proposal is intended to clarify how investment advisers and investment companies should hold crypto assets for clients. It would also remove outdated provisions that, in the SEC’s view, no longer deliver the investor protections required after changes in digital asset markets and trading practices.
The rule is listed under the deregulation agenda in Executive Order 14192, signed by Donald Trump in January 2025. The source described that track as a looser regulatory approach. It is also part of SEC Chair Paul Atkins’ effort to modernize the agency’s rules.
Details to be released after OMB review
Key details have not been made public and will only be released after the OMB completes its review. The proposal could still change before formal publication. If the process moves ahead, the SEC would typically open a public comment period of at least 60 days, then draft a final rule and send it to the commission for a vote.
The SEC currently has October marked for the formal proposal and comment period. For crypto custodians and exchanges that have long faced questions over custody qualification, the rule, if adopted, would directly shape how institutional capital can hold crypto assets in a compliant way.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
