The SEC's rewrite of custody rules for investment advisers and investment companies entered White House review on Aug. 25, adding a crypto-specific framework after the agency withdrew a separate 2023 safeguarding proposal. No text of the new rule is public yet, and the agenda targets October 2026 for a formal proposal.
Rewrite enters White House review
The SEC's proposed rewrite of custody rules for investment advisers and investment companies entered White House review on Aug. 25, placing a new crypto-focused framework into regulatory review. This move follows the agency's withdrawal of a separate 2023 proposal.
Its 2026 regulatory agenda says the planned rule would clarify how investment advisers and investment companies can custody crypto assets under Commission requirements. The current adviser rule covers client funds and securities and generally requires a qualified custodian to hold them in separate client accounts or accounts held by an adviser as agent or trustee.
OIRA's review data lists the rule, RIN 3235-AN46, "Amendments to the Custody Rules," at the proposed-rule stage with an Aug. 25 date. The agenda identifies the same RIN as an SEC action under the Investment Advisers Act and Investment Company Act.
No public text yet
The OIRA entry and SEC agenda provide no proposed rule text. The agenda says advisers and investment companies have raised questions about holding crypto assets in compliance with current custody requirements, but it does not specify which entities would qualify to custody crypto or what controls would apply.
Withdrawn 2023 proposal set the stage
An earlier safeguarding proposal, issued in February 2023, would have retained qualified custodians while broadening the adviser rule beyond funds and securities to all client assets, including crypto. It also proposed protections meant to segregate client assets and protect them if a custodian became insolvent, along with updated recordkeeping requirements.
The Commission formally withdrew that proposal in June 2025 and said any future regulatory action in the area would require a new proposed rule. The current agenda targets October 2026 for a notice of proposed rulemaking and lists no legal deadline.
Source: The Defiant
Trading involves risk.
Risk Disclaimer
