SEC submits digital asset custody proposal to White House for review

The SEC has submitted proposed rules on digital asset custody to the White House for review as the agency steps up efforts to advance the Trump administration’s crypto agenda.

The proposal, sent to the Office of Management and Budget on Aug. 25, would clarify how investment advisers and investment companies can custody crypto assets for clients. Bloomberg was first to report the development.

The rulemaking would also remove outdated custody provisions that the SEC says no longer provide necessary investor protections given changes in digital asset markets and trading practices. The effort is part of Chairman Paul Atkins’ push to modernize the agency’s regulatory framework.

Details will not be released until OMB completes its review and could still change before publication. If the proposal moves forward, the SEC would generally open a public comment period of at least 60 days before drafting a final rule and putting it to a commission vote.