SEC Sends Crypto Custody Rule Overhaul to White House for Review

•1mo ago

SEC Sends Crypto Custody Rule Overhaul to White House for Review

Tap title to read story

0:00 / 1:01

The United States Securities and Exchange Commission submitted a proposed overhaul of its cryptocurrency custody regulations to the White House Office of Management and Budget for review. The draft regulation reached the budget office on August twenty fifth, twenty twenty six, seeking to clarify digital asset frameworks for registered investment advisers and investment companies. Current guidelines predate routine cryptocurrency portfolio inclusion. The proposal aims to remove outdated requirements misaligned with modern trading practices, though specific provisions remain private pending review. SEC Chairman Paul Atkins linked the measure to broader agency modernization efforts following delayed rulemaking discussions. Following OMB evaluation, the commission must hold a formal vote to propose the rule publicly, initiating a mandatory comment period lasting at least sixty days. This regulatory checkpoint precedes formal public scrutiny across financial markets.

Published 2026-08-27 12:22:35 UTC · Published by JQJO

Prepared by Ayesha A. · AI assisted

More context

Timeline

On August 25, 2026, the commission submitted digital asset custody proposals to budget officers.
On August 26, 2026, agency officials confirmed regulatory review schedules involving market oversight divisions.
On August 27, 2026, financial analysts examined potential impacts on institutional investment portfolio management.
In upcoming weeks, the budget office will complete administrative regulatory impact reviews.
During subsequent months, commissioners will vote on advancing formal public rule proposals.
Following commission votes, agencies will open mandatory public comment periods for feedback.
Throughout upcoming quarters, industry stakeholders will submit formal recommendations on custody frameworks.
Following public reviews, regulators will draft final enforceable digital asset guidelines.
During upcoming implementation phases, investment firms will adjust compliance operational procedures.
By late twenty twenty seven, finalized standards will govern institutional cryptocurrency holdings.

Why it matters

Immediate US impact: Immediate US impact shapes compliance strategies for registered investment advisers. Possible long-term US impact: Long-term US impact establishes modernized federal digital asset regulatory frameworks. Most affected groups: Most affected groups include investment advisers, custodians, and digital asset firms. Reader priority: Readers should prioritize official regulatory notices and financial compliance reports.

Coverage notes

Left: Framed as necessary modernization while questioning deregulation risk levels. Center: Framed as a procedural regulatory step updating archaic financial rules. Right: Framed as vital deregulation easing burdensome compliance for markets.