Regulatory & Compliance | 08.26.26

SEC Preps Overhaul of Crypto Custody Rules for Investment Firms

by: Lydia Beyoud

The U.S. Securities and Exchange Commission (SEC) has sent the White House a proposal to overhaul rules governing how investment advisors and investment companies custody cryptocurrency for clients. Submitted to the Office of Management and Budget (OMB) on Aug. 25, the proposal would clarify the regulatory framework for holding digital assets and remove some custody requirements the agency considers outdated because of changes in crypto markets and trading practices. The move reflects SEC Chair Paul Atkins’ effort to modernize rules and advance the Trump administration’s crypto-friendly regulatory agenda while broader cryptocurrency legislation remains stalled in the Senate. Details will remain confidential until OMB completes its review. The SEC would then vote on releasing the proposal, followed by a public-comment period of at least 60 days before potential final adoption.

Read the full article on Bloomberg