SEC Moves Forward on Digital Asset Custody Rule Revision, Submits Proposal to White House

BitcoinWorld

SEC Moves Forward on Digital Asset Custody Rule Revision, Submits Proposal to White House

The U.S. Securities and Exchange Commission (SEC) has submitted a proposed rule revision on digital asset custody to the White House Office of Management and Budget (OMB), marking a significant step toward modernizing how investment advisers and investment companies hold client crypto assets. Bloomberg reported the development, which signals that the Trump administration’s crypto-friendly agenda is translating into concrete regulatory action.

What the Proposal Entails

The draft rule aims to clarify custody standards for digital assets held by investment advisers and investment companies, providing institutions with clearer guidance on safely holding crypto without running afoul of existing SEC regulations. It also seeks to scrap a broad set of outdated requirements that have lagged behind market changes, according to sources familiar with the matter.

The revision is part of a regulatory modernization push led by SEC Chairman Paul Atkins, who has prioritized aligning agency rules with the realities of digital asset markets. If approved, the new framework would replace legacy custody provisions that many industry participants have criticized as ambiguous or ill-suited for crypto’s unique characteristics, such as private key management and blockchain-based transfers.