Next for the U.S. SEC: Agency's chief crypto counsel illuminates path for custody

Once the idea is cleared by the Office of Management and Budget at the White House, the agency can formally propose it and take comment from the industry and public. Meanwhile, Lindman cited the agency's staff statement in December that was meant as an interim approach to steer broker-dealers on how they should handle crypto custody until the rules are in place, and he also referenced its move in September 2025 to allow investment advisers to park customer assets with state-chartered trusts as qualified crypto custodians.

The SEC's previous effort to pursue a custody rule in 2023 was under a decidedly different regime, and then-SEC Chair Gary Gensler said that crypto firms themselves wouldn't qualify to custody the assets. That rule, though, never moved to final form and was scrapped when President Donald Trump returned to the White House and appointed crypto-friendly leadership at the regulator.

Speaking more broadly of the agency's crypto agenda, which has recently included a proposed rule to allow for crypto offerings and a new exemption to clear the way for tokenized securities, Lindman characterized the work as "foundation laying," adding that "some of the foundation laying is boring."

"It's the customary steps associated with taking what was once like this really unique and scary asset, and now saying, 'Hey, look, this is how we think about stablecoins, or this is how we think about non-security crypto assets,' and really trying to put them within a framework that can be built upon for every generation to come," Lindman said. "We need to kind of meet the market where it's at."