SEC revisits crypto custody rules – Can THIS unlock institutional demand?

The Securities and Exchange Commission (SEC) announced it will revisit the question of who should safeguard customer cryptocurrency as part of its proposal to update the Custody Rule.

On the 25th of August, the SEC submitted its proposed amendments to the Custody Rule to the Office of Information and Regulatory Affairs (OIRA). OIRA is responsible for reviewing all economically significant regulations.

This comes after the White House crypto meeting between President Donald J. Trump and crypto executives.

As a result of the determination that the proposed amendments will be considered an economically significant regulation, it is currently under review by the White House.

Notably, Commissioners are prohibited from voting on or disclosing information about the proposed rulemaking prior to completion of the OIRA review.

Additionally, the SEC has noted that it anticipates the publication of the proposed rulemaking will occur no later than October, 2026. Once published, there will be a minimum of 60 days for members of the public to provide comments on the proposed rules.

However, this proposal provides some guidance regarding what is expected of a custodian. Still, despite that, it does not provide absolute certainty immediately.