SEC Advances Crypto Custody Rules, Proposals Submitted to OMB for Review

ChainCatcher report, according to CoinDesk, Taylor Lindman, Chief Counsel of the SEC’s Crypto Task Force, stated at the CoinDesk Policy & Regulation event in Washington that the SEC is advancing rules on cryptocurrency custody, with a related proposal already submitted to the White House Office of Management and Budget (OMB) for review, covering investment companies and broker-dealers. She noted that the rule aims to clarify how non-security cryptocurrencies can be held by broker-dealers without special registration, and to specify that investment advisers may deposit client assets with state-chartered trusts and similar institutions. Once the proposal clears OMB review, the SEC will formally issue it for public and industry comment. Lindman also mentioned that in December 2025, the SEC issued an employee statement as an interim measure to guide broker-dealers on handling cryptocurrency custody prior to the rule’s implementation, and in September 2025, it permitted investment advisers to hold client assets with state-chartered trusts as qualified crypto custodians. Lindman described the SEC’s recent efforts as “laying the groundwork,” including previously proposed rules allowing cryptocurrency issuances and exemptions for tokenized securities. She said the SEC is working to enable existing securities intermediaries and market participants to confidently use blockchain technology and hold and trade crypto assets. The SEC’s 2023 custody rule attempt under Gary Gensler’s leadership had been abandoned; following the Trump administration’s assumption of power, leadership supportive of crypto was appointed.