SEC Sends Crypto Custody Proposal to White House for Review
On August 25, the U.S. Securities and Exchange Commission (SEC) presented a custody proposal titled "Amendments to the Custody Rules" to the White House's Office of Information and Regulatory Affairs (OIRA). This initiative seeks to update custody regulations in line with the Investment Advisers Act of 1940 and the Investment Company Act of 1940, specifically addressing crypto assets. Labeled as "Deregulatory" under Executive Order 14192, it is slated for publication in October 2026. This proposal signifies a departure from the strategy of former Chairman Gary Gensler, whose 2023 Safeguarding Rule was retracted in June 2025. Under Chairman Paul Atkins, this draft is crucial for the institutional adoption of cryptocurrency and is currently under OIRA evaluation, with further information anticipated in October.
Key facts
- SEC submitted 'Amendments to the Custody Rules' to OIRA on August 25
- Proposal classified as 'Deregulatory' under Executive Order 14192
- Targets October 2026 for proposed rule publication
- Withdrew Safeguarding Rule in June 2025
- Issued no-action letter in September 2025 for state-chartered trust companies
- Addressed custody for Franklin Templeton's OnChain Fund
- Part of Chairman Paul Atkins' crypto agenda
- Filing remains confidential
Entities
Institutions
- U.S. Securities and Exchange Commission (SEC)
- White House
- Office of Information and Regulatory Affairs (OIRA)
- Office of Management and Budget (OMB)
- Small Business Administration
- Franklin Templeton
Locations
- United States