SEC submits new crypto custody rule to White House review on August 25, 2026

The SEC's proposed rewrite of custody rules for investment advisers and investment companies entered White House review on August 25, 2026, according to The Defiant. The crypto-focused framework replaces a separate 2023 safeguarding proposal that the Commission formally withdrew in June 2025, announcing that any future action would require a new proposed rule. The SEC's 2026 regulatory agenda says the planned rule would clarify how investment advisers and investment companies can custody crypto assets under Commission requirements, per The Defiant. Current adviser rules require a qualified custodian to maintain client funds and securities in separate client accounts or accounts held by an adviser as agent or trustee. The new agenda covers both investment adviser client assets and investment company fund assets, and the SEC intends to remove what it considers outdated provisions. The White House Office of Management and Budget (OIRA) entry and the SEC's agenda description are the only publicly available materials so far, The Defiant reports. The draft rule text itself remains unreleased.The 2023 safeguarding proposal, withdrawn after industry pushback, would have retained qualified custodians while broadening the adviser rule beyond funds and securities to all client assets, including crypto. It also proposed protections intended to segregate client assets and protect them if a custodian became insolvent, alongside updated recordkeeping requirements, according to The Defiant. Advisers and investment companies have raised questions about holding crypto assets in compliance with current custody requirements, per The Defiant. A 2025 White House order says agencies must continue following Executive Order 12866 processes for submitting regulations to OIRA for review.