SEC sends crypto custody rules to White House

• The SEC sent proposed custody rule changes to the White House for review.
• The rules could clarify how investment advisers and funds hold crypto for clients.
• The proposal is not public yet and could still change before an SEC vote.

The US Securities and Exchange Commission (SEC) sent proposed crypto custody rules to the White House for review.

The proposal reached the Office of Information and Regulatory Affairs (OIRA) on August 25, ahead of possible public consultation.

The SEC said the changes could clarify how investment advisers and funds hold client assets, including crypto.

The proposal could change existing rules under the Investment Advisers Act and Investment Company Act, according to the SEC.

The SEC has not released the proposal, and OIRA can request changes before sending it back to the agency.

The SEC would then need to vote before releasing the proposal for public comment, meaning the rules are not final.

The move comes as SEC Chair Paul Atkins pushes the agency towards formal crypto rulemaking rather than enforcement-led regulation.