SEC sends crypto custody overhaul to White House for review
The SEC sends crypto custody rule changes to the White House for review after submitting amendments on Aug. 25 to OIRA. The overhaul aims to clarify how investment advisers and funds can hold digital assets for clients under federal securities law before any public comment period begins.
Key Takeaways
- The SEC sent its proposed “Amendments to the Custody Rules” to OIRA on Aug. 25 for White House review.
- Changes would cover how investment advisers and funds hold client assets, including crypto.
- The full proposal is not yet public; OMB can request edits before it returns to the SEC.
- The move fits Chair Paul Atkins’ shift from enforcement toward formal crypto rulemaking.
- It advances as the CLARITY market structure bill remains stalled in the Senate.
What did the SEC submit for White House review?
The US Securities and Exchange Commission is advancing plans to overhaul custody rules for investment advisers and investment companies. Clearer rules could help institutions hold crypto for clients while complying with federal securities requirements.
On Aug. 25, the agency sent the proposed rule to the Office of Information and Regulatory Affairs (OIRA), part of the White House Office of Management and Budget. The filing is tracked on Reginfo.gov, the government’s regulatory agenda site.
According to the SEC’s regulatory agenda, the agency may change existing rules or introduce new ones under the Investment Advisers Act and the Investment Company Act. Those updates would cover how advisers and funds hold client assets, including crypto.
What happens after the White House reviews the proposal?
The proposal has not been made public. The White House Office of Management and Budget can request changes before sending it back to the SEC. The commission would then vote on whether to release it for public comment.
That process is the next gate for firms seeking concrete custody standards. Until the text is published, the market will not know the precise requirements the SEC plans to propose.
For more regulator and market-structure coverage, see BlasterPost’s Fintech & Crypto Alerts hub.
Why does the SEC want clearer crypto custody rules now?
The regulator said the changes are intended to clear up uncertainty around how companies can hold crypto for clients while staying within its rules. The custody overhaul targets that gap for advisers and investment companies.
Since Paul Atkins became SEC chair in 2025, the agency has taken a more crypto-friendly approach, shifting from enforcement toward formal rulemaking. Atkins vowed to end “regulation through enforcement.” In 2025, the SEC also dismissed several cases against major crypto companies, including its lawsuit against Coinbase.
How does this fit Washington’s broader digital asset agenda?
As Bloomberg reported, the proposed rule is part of a broader push to advance the Trump administration’s digital asset agenda while the CLARITY market structure bill remains stalled in the Senate. The bill is expected to face a cloture vote after lawmakers return from the August recess in September.
Separately, a National Institute on Retirement Security survey found 77% of Americans see crypto in workplace retirement plans as risky, even as US policymakers move to expand access to alternative assets. Clearer custody rules would not end that skepticism, but they would shape how institutions hold digital assets if crypto keeps entering mainstream finance.
Until OIRA finishes review and the SEC votes, the story is still process—but custody clarity remains a high-stakes unlock for advisers and funds serving crypto clients under US securities law.