SEC Crypto Custody Rule Advances to White House Review
The Securities and Exchange Commission has sent its crypto custody rule overhaul to the White House for review, according to multiple sources. The proposal aims to modernize how investment advisers and funds hold digital assets for clients, representing a second attempt at the rule after the previous administration's effort in 2023 stalled.
The 2023 version sought to narrowly restrict where investment advisers could park client crypto holdings, but faced obstacles. The new approach remains largely under wraps, though sources indicate the SEC is pursuing clarification on custody arrangements as institutional participation in crypto markets continues to grow.
The timing places the proposal in the White House review pipeline under the current administration, adding crypto custody to an active list of regulatory priorities. The rule's eventual implementation could reshape how institutional investors access and safeguard digital assets.
Regulatory Momentum Outpaces Congressional Action
The SEC's independent regulatory push underscores a widening gap between executive-branch policymaking and stalled congressional efforts. A vote on the Clarity Act, which has been pursued to establish clearer securities frameworks for digital assets, has not advanced, yet regulators continue developing rules.
