SEC sends crypto custody rule changes to White House for review
A proposal from the SEC to change its rules governing how investment advisers hold digital assets was sent this week to the White House.
The U.S. Securities and Exchange Commission has forwarded a proposed rule change governing how investment advisers must custody digital assets to the White House for review, according to a report from The Block published August 26, 2026. The submission marks a formal step in the federal rulemaking process, moving the proposal to the Office of Information and Regulatory Affairs for evaluation before any final action can be taken.
The move follows years of regulatory debate over how digital assets should be safeguarded by registered investment advisers. The SEC has previously sought to expand its custody requirements to cover crypto holdings, a push that drew significant pushback from industry participants who argued that existing rules were not designed with digital assets in mind. The agency has been working to refine its approach amid broader efforts to establish clearer regulatory frameworks for the crypto sector.
If adopted, updated custody rules could have significant implications for investment advisers managing client crypto portfolios, potentially imposing stricter requirements around qualified custodians, recordkeeping, and asset segregation. Such changes would directly affect how institutional players and advisory firms structure their digital asset operations and could reshape relationships with crypto custodians across the industry.
Market participants and compliance professionals will be watching the White House review timeline closely, as the outcome will determine whether revised custody requirements advance toward formal adoption or face further revision.
Source: The Block
