SEC advances crypto custody rules for investment advisers

The SEC is advancing plans to overhaul custody rules for investment advisers and investment companies. The proposed changes would cover how advisers and funds hold client assets, including crypto. The SEC sent the proposal to the Office of Information and Regulatory Affairs on Aug. 25. OIRA is part of the White House Office of Management and Budget. The proposal is titled Amendments to the Custody Rules. The SEC said the changes could clarify how companies hold crypto for clients while complying with federal securities rules. The proposal has not yet been made public. The Office of Management and Budget can request changes before returning it to the SEC. The SEC would then vote on whether to release the proposal for public comment. Bloomberg reported that the proposal is part of the SEC's broader effort to advance the Trump administration's digital asset agenda. 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. Paul Atkins became SEC chair in 2025. The SEC has shifted its focus from enforcement actions toward formal rulemaking under Atkins. Atkins said policymaking should be carried out through formal rulemaking instead of regulation through enforcement. The SEC dismissed several cases against major crypto companies in 2025. One dismissed case was its lawsuit against Coinbase.