SEC Sends Crypto Custody Rule Rewrite to White House
The SEC has transmitted a revised crypto custody rule to the White House for review, flagged as deregulatory.
The U.S. Securities and Exchange Commission has submitted its updated crypto custody rule to the White House Office of Information and Regulatory Affairs (OIRA) for final review, a procedural step that precedes formal publication in the Federal Register.
The submission is designated as deregulatory, signaling the SEC's intent to ease compliance requirements compared with its previous safeguarding proposal. That earlier draft, introduced in 2023, triggered broad pushback from the crypto industry over its treatment of digital assets and scope.
OIRA review is a standard stage in federal rulemaking, during which agencies assess costs and benefits. The length of this review varies, and the SEC will still need to publish a final text and solicit public input before any new standards take effect.
The exact content of the revised rule remains undisclosed. However, the deregulatory tag suggests a shift away from the stricter custody expectations previously proposed, potentially offering a clearer path for registered investment advisers holding crypto assets.