ChainCatcher report, according to Bloomberg, the U.S. SEC submitted a new proposal to the White House Office of Management and Budget (OMB) on August 25 to establish a new custody rule framework for investment advisers and investment companies holding client digital assets. The proposal aims to clarify the custody framework for crypto assets, addressing prior questions from investment firms and advisers on how to hold digital assets for clients without violating regulatory requirements, while also eliminating certain existing custody requirements that the SEC considers outdated due to market evolution and current trading and holding practices. The SEC stated that this proposal is part of Chairman Paul Atkins’s efforts to modernize the regulatory framework. Full details of the proposal will be made public only after the OMB completes its review, at which point it will be returned to the SEC, potentially with revisions, and then voted on by the current three-member Republican-led committee before being publicly announced. As is customary, the SEC typically solicits at least 60 days of public comment before a final vote to adopt the rule.
U.S. SEC Proposes Revised Crypto Custody Rules, Submitted to White House for Review
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Summary
On August 25, 2026, the U.S. SEC submitted a revised custody rule proposal to the White House OMB, targeting oversight of liquidity and crypto markets. The initiative seeks to modernize custody protocols for digital assets by addressing outdated requirements and industry feedback. As part of SEC Chair Paul Atkins’ regulatory modernization efforts, the proposal will undergo OMB review prior to public release. Upon return, the final rule will require approval by a majority vote of the SEC, including Republican members, and a 60-day public comment period. The update also aligns with broader CFT (Countering the Financing of Terrorism) initiatives in crypto compliance.
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