White House begins nonpublic review of SEC crypto custody rule revision

A proposed revision to the U.S. Securities and Exchange Commission's crypto asset custody rule entered White House review on Aug. 25. A rulemaking process that directly affects investment advisers, funds and the institutions that hold their assets has begun, blockchain media outlet CryptoSlate reported on Aug. 27 (local time).

Records from the Office of Information and Regulatory Affairs (OIRA), under the White House Office of Management and Budget, list the SEC's "custody rule revision" as under review at the proposed rule stage. There is no statutory deadline, and publication of the actual rule text and review by the SEC commission are still pending.

The SEC's unified regulatory agenda includes crypto in a review to change custody rules for investment adviser client assets and fund assets. The target timing for a proposed rule notice is set for October 2026, but this is only an internal agency plan, not a legal deadline.

The key issues in the revision are which entities can custody crypto and what controls and safeguards they must have. Public records do not include the actual proposed text, so it has not yet been decided how custody eligibility, internal controls and safety measures will change.