The Securities and Exchange Commission submitted proposed amendments to custody rules for investment advisers and investment companies to the White House Office of Management and Budget on Aug. 25, 2026, according to CoinTelegraph. The move marks the next step in a regulatory overhaul aimed at clarifying how investment advisers and funds hold digital assets for clients under federal securities law.
The proposal addresses custody requirements under the Investment Advisers Act and the Investment Company Act. The SEC intends to establish clearer pathways for advisers and funds to custody crypto assets while maintaining compliance with existing securities rules. The Office of Information and Regulatory Affairs, a division of the White House OMB, will now conduct its review before the SEC can move toward public comment.
The custody rule proposal reflects a shift in SEC leadership and enforcement direction. Paul Atkins, who became SEC Chair in 2025, has reoriented the agency away from what he characterized as “regulation through enforcement” toward formal rulemaking processes. In 2025, the SEC dismissed several cases against major crypto companies, including its lawsuit against Coinbase.
The custody proposal is part of the Trump administration’s broader digital asset agenda. It arrives as the CLARITY market structure bill, which addresses crypto regulation more broadly, remains stalled in the Senate. Lawmakers are expected to return from their August recess in September 2026, when a cloture vote on the CLARITY bill is anticipated.
The SEC did not specify the exact content of the proposed amendments or provide a timeline for when it would vote on releasing the rule for public comment. OIRA’s review process typically involves coordination with other federal agencies and can result in requests for modifications before the SEC proceeds.
