The U.S. Securities and Exchange Commission has sent a new proposal on digital asset custody to the White House Office of Management and Budget for review, according to Bloomberg. The proposal, submitted on Aug. 25, would address how investment advisers and investment companies can hold crypto assets for clients without running afoul of SEC rules. Federal regulatory agenda documents say the measure is intended to clarify the custody framework for crypto assets. The SEC also said the proposal would remove some custody requirements it now considers outdated because of changes in markets, trading practices, and asset-holding methods. The move is part of Chair Paul Atkins’ push to modernize the agency’s regulatory framework. The full text has not yet been released and could still be changed during the White House review process. After that, it would go to a vote before the SEC, which is currently composed of three Republican commissioners. If approved, the agency would typically open a public comment period of at least 60 days before revising the proposal and holding another vote for a final rule.
The U.S. Securities and Exchange Commission sent a new proposal on digital asset custody to the White House Office of Management and Budget on Aug. 25 for review, according to Bloomberg.
Federal regulatory agenda documents say the measure would clarify the custody framework for crypto assets. It is aimed at answering how investment advisers and investment companies can hold digital assets on behalf of clients without violating SEC rules.
Proposal targets crypto custody rules
The SEC said the proposal would also remove some custody requirements it now sees as outdated because of changes in market structure and in the way transactions and asset holdings are handled. The agency described that effort as part of Chair Paul Atkins’ broader push to modernize the regulatory framework.
Text will be released after White House review
The full proposal will not be published until the Office of Management and Budget completes its review. That office may make changes to the contents before the proposal moves to a vote at the SEC, which is currently made up of three Republican commissioners.
If the proposal passes, the SEC would typically open it for public comment for at least 60 days. The agency would then revise the text and vote again before any final rule could take effect.
Bloomberg said the move shows U.S. financial regulators are still advancing the Trump administration’s crypto policy agenda while legislation on broader crypto market structure remains stalled in the Senate.
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