The Securities and Exchange Commission has sent a new proposal to the White House that would reshape how investment advisers custody digital assets for their clients.
The item was submitted to the White House’s Office of Management and Budget on August 25, according to a posting on the OMB’s website.
What the proposal covers
The rule would update custody requirements for investment firms that hold digital assets, including bitcoin, on behalf of clients.
While the full text of the proposal has not yet been made public, the submission signals that the SEC is moving forward with a formal regulatory framework for crypto custody among registered advisers.
Broader regulatory context
The SEC under the current administration has taken a notably different approach to digital asset regulation compared to the Gary Gensler era, which relied heavily on enforcement actions rather than formal rulemaking.
A custody rule overhaul has been anticipated since SEC Chair Paul Atkins signaled interest in providing clearer guidelines for firms looking to offer bitcoin-related services.
The proposal now sits with the Office of Management and Budget for review before the SEC can formally publish it for public comment.
What comes next
Once the OMB review is complete, the SEC would issue the proposal for a public comment period, after which the agency could finalize the rule.
The development comes as institutional interest in bitcoin custody continues to grow, with major financial firms expanding their digital asset offerings.
