U.S. SEC Sends Revised Crypto Custody Proposal to OMB for Review

Aug. 25 — The U.S. Securities and Exchange Commission has submitted a new rulemaking proposal to the White House Office of Management and Budget (OMB), seeking to set a refreshed regulatory framework for how investment advisers and investment companies safeguard clients' digital assets, Bloomberg reported. The proposal is expected to clarify how regulated firms can custody crypto assets in compliance with SEC requirements, responding to longstanding questions from advisers and fund managers. It would also remove certain custody obligations the SEC views as outdated. The SEC said the initiative aligns with Chairman Paul Atkins' push to modernize the agency's regulatory approach. Details will remain confidential while the OMB conducts its review. Once the review is complete, the proposal will return to the SEC, potentially with revisions, and then be put to a vote by the current three-member Republican majority. Under typical SEC process, the agency would open a public comment period of at least 60 days before finalizing any rule, followed by another vote for the rule to take effect.