SEC Custody Rule Rewrite Hits White House Review

Federal regulators are taking another look at how investment advisers handle digital assets. The Securities and Exchange Commission sent its proposed rewrite of custody rules over to White House review on August 25. This step brings a crypto focused framework closer to final consideration after the agency previously pulled back a separate safeguarding proposal from 2023.

For traders and firms, this process matters because custody rules dictate how institutional money interacts with digital assets. Clear guidelines could open the door for more traditional finance players to hold crypto securely. At the same time, strict requirements might shape how custodians operate in the US market.

We will be watching to see how long the White House review takes and what specific changes appear in the final text. Keep an eye on regulatory updates as this policy slowly moves toward a final vote.