TLDR
- The SEC sent its “Amendments to the Custody Rules” proposal to the White House Office of Information and Regulatory Affairs on August 25, 2026.
- The rule would change how investment advisers and funds hold crypto assets for clients under federal securities law.
- The proposal is not yet public and must clear White House review before the SEC can vote on releasing it for comment.
- The move is part of a wider push tied to the Trump administration’s digital asset agenda.
- It comes as the CLARITY Act market structure bill remains stalled in the Senate, with a cloture vote expected in September.
The US Securities and Exchange Commission is working on a rule change that could reshape how crypto is held for clients. The agency sent the proposal to the White House for review on August 25, 2026.
The rule is called “Amendments to the Custody Rules.” It was submitted to the Office of Information and Regulatory Affairs, a part of the White House Office of Management and Budget.
This office reviews federal rules before they move forward. It can request changes before sending the rule back to the SEC.
The proposal covers investment advisers and investment companies. These are firms that manage money on behalf of clients, including funds.
What the Rule Would Change
The SEC is looking at changes under the Investment Advisers Act and the Investment Company Act. Both laws set rules for how client money and assets are handled.
The new rule would address how these firms can hold crypto assets for clients. Right now, there is uncertainty about how firms should do this while following SEC rules.
The SEC has said the goal is to clear up that uncertainty. Firms have asked for clearer guidance on crypto custody for years.
The proposal has not been made public yet. It still needs to clear White House review first.
Once that happens, it goes back to the SEC. The commission would then vote on whether to release it for public comment.
Bloomberg first reported on the proposal’s progress through this process. The outlet described it as part of the SEC’s broader work on crypto policy.
This effort connects to the current administration’s digital asset agenda. Regulators have been pushing several crypto related initiatives through different agencies.
One of those efforts is the CLARITY Act, a market structure bill in the Senate. That bill has been stalled for months.
Lawmakers are expected to return from the August recess in September. A cloture vote on the bill is expected after they return.
SEC’s Shift From Enforcement to Rulemaking
The SEC has changed its approach to crypto since Paul Atkins became chair in 2025. The agency has moved away from enforcement actions.
Atkins has said the SEC should set crypto policy through formal rulemaking instead. He has criticized the agency’s past approach of using lawsuits to set rules.
That past approach was often called “regulation through enforcement.” Companies said it left them guessing about what was allowed.
In 2025, the SEC dropped several cases against crypto companies. This included its lawsuit against Coinbase.
The custody rule proposal fits into this shift. It uses the formal rulemaking process rather than a court case or an enforcement action.
For now, the proposal remains under White House review. There is no set timeline for when it will move back to the SEC.
The next step will be the OIRA review process. After that, the SEC will decide whether to open it up for public comment.
