SEC Moves Crypto Custody Rulemaking Forward, Sends Proposal to White House OMB for Review

The U.S. Securities and Exchange Commission is pressing ahead with a rulemaking package on crypto-asset custody, submitting the proposal to the White House Office of Management and Budget (OMB) for review. According to Gold财经, Taylor Lindman, chief counsel of the SEC's Crypto Task Force, said at CoinDesk's Policy & Regulation event in Washington on September 23 that the agency has transmitted draft custody rules to OMB. The proposal applies to investment companies and broker-dealers. Lindman said the initiative is intended to clarify how broker-dealers can custody non-security crypto assets without obtaining special registration. It would also spell out that investment advisers may place client assets with state-chartered trust companies and similar institutions. After OMB completes its review, the SEC plans to publish the proposal for public and industry comment. Lindman said the SEC will release an employee statement in December 2025 as a stopgap measure to guide broker-dealers on crypto custody ahead of the rule's effective date. She added that, starting in September 2025, investment advisers will be allowed to hold client assets with state-chartered trusts as qualified crypto custodians. She characterized the SEC's recent actions as "laying the groundwork," pointing to prior proposals that would allow crypto issuances and provide exemptions for tokenized securities. Lindman said the agency is aiming to give existing securities intermediaries and other market participants a clearer path to use blockchain technology to hold and trade crypto assets. The SEC's earlier effort to write crypto custody rules under then-Chair Gary Gensler in 2023 was shelved after the Trump administration appointed leadership viewed as more supportive of crypto.