The US Securities and Exchange Commission is moving ahead with a proposed overhaul of custody rules for investment advisers and investment companies, a step that could give institutions clearer guidance on how to hold crypto assets for clients while staying within federal securities rules.
The proposal was sent on Aug. 25 to the Office of Information and Regulatory Affairs, or OIRA, for review. OIRA is part of the White House Office of Management and Budget. The rule must clear that stage before it can return to the SEC and potentially be released for public comment.
Proposal reaches OIRA but has not been published
Reginfo.gov shows that the SEC submitted a proposal titled “Amendments to the Custody Rules” to OIRA.
According to the SEC’s regulatory agenda, the agency is considering either revising existing rules or introducing new ones under the Investment Advisers Act and the Investment Company Act. The changes would address how investment advisers and funds hold client assets, including crypto.
The SEC said the effort is meant to reduce uncertainty around how firms can custody crypto for clients while complying with its rules. The proposal has not yet been made public. The White House Office of Management and Budget can request changes before returning it to the SEC, and the commission would then vote on whether to issue it for public comment.
Move comes as digital asset legislation remains stuck
Bloomberg reported that the proposed rule is part of a broader SEC push to advance the Trump administration’s digital asset agenda. At the same time, the CLARITY market structure bill remains stalled in the Senate. The bill is expected to face a cloture vote after lawmakers return in September from the August recess.
SEC has shifted from enforcement to rulemaking
The agency has taken a more crypto-friendly line since Paul Atkins became chair in 2025. Its focus has shifted away from enforcement actions and toward writing clearer rules for the sector. Atkins said he would end the SEC’s earlier approach of “regulation through enforcement” and argued that policy should be set through formal rulemaking instead.
That change has shown up in enforcement as well. In 2025, the SEC dropped several cases against major crypto companies, including its lawsuit against Coinbase, as it reshaped its approach to digital assets.