SEC Crypto Custody Rule Moves to White House Review

The U.S. Securities and Exchange Commission has moved its proposed crypto custody overhaul to the White House for review, marking another step toward clearer rules for investment advisers holding digital assets.

The proposal, titled “Amendments to the Custody Rules,” reached the Office of Management and Budget (OMB) on August 25. The measure could reshape how registered investment advisers safeguard client cryptocurrencies and other assets.

OMB records classify the proposal as economically significant, meaning it could have an annual economic impact of at least $100 million. It is also categorized as deregulatory under President Donald Trump’s Executive Order 14192, signaling that the SEC intends to ease rather than expand existing custody requirements.

The SEC’s regulatory agenda specifically references crypto assets and targets October for publication of a formal proposal. That would allow investors, advisers, crypto companies and other stakeholders to submit public comments.

Current SEC custody requirements generally require advisers to keep client assets with qualified custodians such as banks or broker-dealers. However, limited crypto support among traditional custodians has made compliance difficult for advisers seeking exposure to digital assets.

The latest approach represents a shift from former SEC Chair Gary Gensler’s 2023 Safeguarding Rule, which would have expanded custody obligations. The SEC formally withdrew that proposal in June 2025.

Crypto industry participants have since pushed for updated standards. Andreessen Horowitz has advocated modernized custody regulations, while lawyers representing Delphi Ventures and Multicoin Capital proposed a framework allowing technologies such as multi-signature and multi-party computation wallets.

The custody proposal follows the SEC’s August 18 introduction of Regulation Crypto Assets, which seeks to establish clearer pathways for token fundraising under federal securities laws.

Meanwhile, Congress continues debating broader crypto legislation. The House passed the CLARITY Act by a 294-134 vote in July 2025, but the measure remains stalled in the Senate ahead of a potential September 15 procedural vote.

With congressional action uncertain, the SEC appears to be advancing its own crypto regulatory agenda. The length of the OMB review and meetings requested by industry participants could provide the next clues about how quickly the new SEC crypto custody rules will move forward.