SEC Takes New Step Toward Crypto Custody Rules
The proposal affects investment firms and broker-dealers and could bring clarity to the custody of crypto assets, stablecoins, and tokenized securities.
Key Takeaways
- The U.S. SEC is working on new rules for the custody of crypto assets, with a proposal that affects investment firms and broker-dealers.
- The proposal is now under review at the White House; after approval, the SEC can formally publish it and gather market feedback.
- The new approach differs from the failed custody initiative from 2023 and fits into a broader crypto agenda for custody, trading, and tokenized assets.
The American SEC is working on new rules for the custody of crypto assets. The regulator has a custody proposal that affects both investment firms and broker-dealers, and it is now under review at the White House. According to Taylor Lindman, chief counsel of the Crypto Task Force, the framework should make it clear how firms can hold crypto assets without unnecessary extra registration and where investment advisers can keep client assets.
New Rules Are on the Way
Lindman said Tuesday at the CoinDesk Policy & Regulation event in Washington that the SEC wants existing market participants to get used to blockchain and crypto assets. In his words, the regulator is trying to get traditional intermediaries and other market participants to operate in an environment where they can use, hold, and trade crypto, including crypto assets that do and do not count as securities.
Once the Office of Management and Budget approves the proposal, the SEC can formally publish it and collect responses from the market and the public. Until then, the regulator is pointing to a staff statement from December, meant as temporary guidance for broker-dealers, and to the step taken in September 2025 to let investment advisers place client assets with state-chartered trusts as qualified crypto custodians.
A Break From 2023
The current approach stands in sharp contrast to the earlier custody initiative from 2023. That plan came under different leadership and assumed that crypto firms themselves were not suitable to hold the assets. The proposal did not make it to the finish line and disappeared after President Donald Trump returned to the White House and the regulator got more crypto-friendly leadership.
That history shows how sensitive custody rules are for the crypto market. For firms that hold crypto on behalf of clients, it is not just about technology, but also about which players are allowed to operate under which rules.
Broader Crypto Framework
Lindman described the SEC’s broader crypto agenda mainly as “foundation laying.” He pointed to a proposed framework for crypto offerings and a new exemption for tokenized securities. He also said the regulator is trying to place stablecoins and non-security crypto assets into a recognizable framework.
For European crypto followers, this matters because the U.S. is gradually building its own rulebook for custody, trading, and tokenized assets. That could be important for international firms active in multiple markets, especially as regulators increasingly try to fit blockchain into existing financial infrastructure. The SEC’s recent move around tokenized securities venues also fits into this broader shift toward more room for blockchain-based market infrastructure.
