Crypto News: SEC Seeks White House Review of Crypto Custody Rules

The U.S. SEC has sent planned changes to its crypto custody rules to the White House for regulatory review. The filing marks another step in the agency’s effort. That clarifies how investment advisers and investment companies can hold digital assets for clients.

The Office of Information and Regulatory Affairs received the proposal on August 25 and lists the review as pending. The crypto news does not yet change existing custody requirements or create a new rule.

SEC Moves Crypto Custody Plan Into Review

The White House review covers the SEC’s planned “Amendments to the Custody Rules.” They are listed under regulatory identification number 3235-AN46.

The Office of Information and Regulatory Affairs reviews federal regulatory actions before agencies move further through the rulemaking process.  It comes under the Office of Management and Budget.

The filing labels the initiative deregulatory, matching the SEC’s plan to remove custody provisions it now considers unnecessary.

The SEC says investment advisers and investment companies have raised questions about holding crypto assets under custody requirements.

The agency plans to consider amendments to existing rules. It may introduce new rules under the Investment Advisers Act of 1940 and the Investment Company Act of 1940.

Therefore, the crypto news also seeks to modernize provisions that the SEC considers outdated as trading, settlement, and asset-holding practices evolve.

Crypto Custody Rules Have Not Changed Yet

The White House review does not amount to final approval. Furthermore, investors should not treat the submission as a new custody standard. OIRA must first complete its review process.

The SEC would then need to advance a formal proposal. They may do this through their own rulemaking procedures before any new requirements can take effect. The agency’s regulatory agenda targets October 2026 for a notice of proposed rulemaking.

That distinction is relevant for advisers, funds, and custodians operating today. Existing SEC custody rules continue to govern client and fund assets while the new framework moves through review.

The current process may set rules for how registered firms can store crypto. It may also define eligible custodians and required safeguards.

SEC Reopens Custody Debate After 2025 Withdrawal

The latest crypto news follows the SEC’s June 2025 decision to withdraw an earlier safeguarding plan. The agency introduced it in 2023. That previous proposal sought to expand the investment adviser custody framework beyond funds and securities. This covered a wider range of client assets.

The Commission withdrew it before adoption and said any future action in that area would require a new proposal. The withdrawal kept older custody rules intact while US SEC staff continued issuing narrower guidance for specific crypto arrangements.

Since then, the SEC has taken several separate steps on digital asset custody. In 2025, SEC staff issued guidance on crypto custody. It allowed certain firms to use qualifying state trust companies.

The guidance came with specific conditions. In December 2025, staff also outlined crypto custody rules for broker-dealers, including private-key protections.

Atkins Pushes Broader Crypto Rule Modernization

SEC Chair Paul Atkins has placed crypto custody within a wider regulatory program focused on digital assets and tokenized securities. In the agency’s 2026 regulatory agenda, Atkins said the Commission wants clearer rules for capital raising, on-chain securities trading and custody.

He has also supported giving registered firms more options when choosing compliant methods for safeguarding crypto assets.

The custody proposal now under White House review could provide the market with its clearest view of how the Commission plans to turn that approach into formal rules. Until OIRA completes its review and the SEC publishes the proposal, key details will stay unavailable.