SEC moves forward on crypto custody rule; proposal sent to OMB for review

ChainCatcher reports, citing CoinDesk, that Taylor Lindman, chief counsel to the SEC's Crypto Task Force, said the agency is progressing a rulemaking on cryptocurrency custody and has already submitted a related proposal to the White House Office of Management and Budget (OMB) for review. The proposal would apply to investment companies and broker-dealers. Speaking at CoinDesk's Policy & Regulation event in Washington, Lindman said the rule is intended to clarify how broker-dealers can custody non-security cryptocurrencies without needing special registration, and to allow investment advisers to place client assets with state-chartered trusts and similar institutions. After the proposal completes OMB review, the SEC would publish it for public and industry comment. Lindman noted that the SEC issued an employee statement in December 2025 as an interim step to guide broker-dealers on crypto custody ahead of the rule's implementation. She added that in September 2025, the SEC allowed investment advisers to use state-chartered trusts as qualified crypto custodians. She characterized the agency's recent actions as "laying the groundwork," pointing to earlier proposals that would facilitate cryptocurrency issuances and provide exemptions for tokenized securities. Lindman said the SEC is aiming to give existing securities intermediaries and market participants greater confidence to adopt blockchain technology and to hold and trade crypto assets. The SEC's 2023 custody rule initiative launched under then-Chair Gary Gensler was later abandoned. After the Trump administration took office, the agency appointed leadership seen as more supportive of crypto.