SEC sends crypto custody rule changes to White House for review - The Block

The Securities and Exchange Commission has taken a procedural but meaningful step in its long-awaited effort to update crypto custody rules: it sent the proposed changes to the White House Office of Management and Budget for interagency review. This is a standard stage in the federal rulemaking process, signaling that the SEC is one step closer to publishing a formal proposal in the Federal Register. While the exact contents haven't been made public, the rule is expected to address how registered investment advisers must safeguard client digital assets, likely revising the 2003 custody rule for modern realities.

For the market, the stakes are practical. Investment advisers and institutional funds have long cited ambiguity about which entities qualify as "qualified custodians" for crypto—a key hurdle to deeper participation. Clear, workable custody standards could reduce operational risk and boost confidence among allocators, while stricter requirements could raise compliance costs for custodians.

The review at OMB is not the finish line. Investors should watch for the official proposal, its public comment period, and any revisions before a final rule lands. Specific deadlines remain uncertain, but the process is now visibly in motion.