SEC Submits Crypto Custody Rule Update to White House

The U.S. Securities and Exchange Commission has submitted a proposal to the White House to update how investment advisers and funds hold cryptocurrency for clients, a move that advances the Trump administration's digital asset agenda while key market structure legislation remains stalled in Congress. The proposal, titled Amendments to the Custody Rules, was sent to the Office of Information and Regulatory Affairs, an arm of the White House Office of Management and Budget, on August 25, 2026. The rulemaking aims to clarify the framework for the custody of crypto assets under existing federal securities laws and remove outdated provisions the agency says no longer serve investor protection.