SEC Crypto Custody Rewrite Enters White House Review

The planned rule would cover advisers and investment companies and clarify digital-asset custody, following the withdrawal of a separate 2023 proposal.

The Securities and Exchange Commission’s proposed rewrite of custody rules for investment advisers and investment companies entered White House review on Aug. 25, placing a new crypto-focused framework into regulatory review after the agency withdrew a separate 2023 safeguarding proposal.

The SEC’s 2026 regulatory agenda says the planned rule would clarify how investment advisers and investment companies can custody crypto assets under Commission requirements. The current adviser rule covers client funds and securities and generally requires a qualified custodian to maintain them in separate client accounts or accounts held by an adviser as agent or trustee.

The new agenda covers both investment adviser client assets and investment-company fund assets, and says the SEC intends to remove burdens from provisions it considers outdated. The separate 2023 proposal focused on registered investment advisers, would have expanded the custody rule to all client assets and proposed additional protections involving segregation and custodian insolvency.