SEC Sends Updated Crypto Custody Proposal to White House Budget Office for Review
AI Market Summary
The SEC has submitted revised crypto custody rules to the White House OMB, signaling movement toward a clearer framework for advisers and funds holding client digital assets. By potentially removing outdated requirements and aligning rules with current market practices, the proposal could reduce compliance uncertainty. Near-term impact is tempered by the OMB review, a likely 60+ day comment period, and a later SEC vote before any changes take effect.
Impact level
● Medium
Affected assets
BTC/USDT+1.04%
AI Insight · BTC/USDTAI Insight
● Neutral
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The U.S. Securities and Exchange Commission has submitted a revised proposal to the White House Office of Management and Budget (OMB) on August 25, Bloomberg reported. The plan would create a new custody-rule framework for investment advisers and investment companies that hold client digital assets.
The proposal is intended to clarify how crypto assets should be custodied, responding to long-running questions from firms and advisers about how to safeguard client digital assets without breaching regulatory requirements. It would also remove certain existing custody obligations the SEC views as outdated in light of market changes and current trading and holding practices.
The SEC said the initiative is part of Chairman Paul Atkins's push to modernize the regulatory framework. Details will be released after the OMB completes its review; the proposal would then return to the SEC, potentially with revisions, before being put to a vote by the current three-member, Republican-led commission and later announced publicly. The SEC typically opens a public comment period of at least 60 days before a final adoption vote.
