Chair

Paul Atkins

Rule

when

<h3 id="key-takeaways">Key Takeaways</h3><ul><li>Federal regulators submitted revised cryptocurrency custody regulations to the White House Office of Management and Budget on August 25</li><li>The framework aims to establish clear guidelines for how investment firms and funds may safeguard digital assets on behalf of clients</li><li>Details remain confidential as the proposal undergoes executive branch review and potential modification</li><li>Chair Paul Atkins has prioritized formal rulemaking over enforcement actions since assuming leadership in 2025</li><li>This development occurs while the CLARITY legislation continues to face delays in the Senate</li></ul>Federal securities regulators are advancing their efforts to establish comprehensive guidelines governing cryptocurrency custody by investment professionals. The agency submitted its proposal to the Office of Information and Regulatory Affairs within the White House Office of Management and Budget on August 25 as part of the mandatory review process.<blockquote class="twitter-tweet">SEC Prepares Crypto Custody Rule Overhaul for Investment Advisers and FundsAccording to Bloomberg, the SEC sent a new proposal to the White House Office of Management and Budget on Aug. 25 to clarify the custody framework for crypto assets held by investment advisers and… <a href="https://t.co/Kepg1PfMni" rel="noopener noreferrer nofollow">pic.twitter.com/Kepg1PfMni</a>— Wu Blockchain (@WuBlockchain) <a href="https://x.com/WuBlockchain/status/2092617386721763367?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">August 26, 2026</a></blockquote>According to the commission, numerous investment advisers have sought clarification on complying with current regulations while managing cryptocurrency holdings. This regulatory initiative responds directly to those industry inquiries.Officials characterized the rulemaking effort as an attempt to “clarify the framework for the custody of crypto assets for investment advisers and investment companies.” Additionally, the proposal would eliminate provisions that regulators consider obsolete.The full text remains unavailable to the public at this stage. The Office of Management and Budget maintains authority to recommend modifications before returning the document to the commission. Following that review, commissioners would determine whether to publish the proposal for public feedback.<h3 id="new-leadership-brings-regulatory-philosophy-change">New Leadership Brings Regulatory Philosophy Change</h3>The commission has adopted a markedly different posture toward digital assets since Paul Atkins assumed the chairmanship in 2025. He committed to abandoning the previous “regulation through enforcement” strategy in favor of establishing clear regulatory frameworks.Throughout 2025, the agency withdrew multiple enforcement actions against prominent <a href="https://coincentral.com/news/analysis/" rel="noopener noreferrer nofollow">crypto companies</a>, including litigation involving Coinbase. Additional guidance clarified that memecoins fall outside securities classifications and outlined which staking operations remain beyond securities law jurisdiction.Recently, regulators unveiled “Regulation Crypto Assets,” characterized as a customized offering framework designed to facilitate capital formation while maintaining investor protections. This followed joint guidance issued earlier this year in coordination with the Commodity Futures Trading Commission.Atkins has publicly announced intentions to establish an innovation exemption mechanism to accelerate approval of cryptocurrency products, although specific details of that framework remain forthcoming.<h3 id="congressional-legislation-remains-uncertain">Congressional Legislation Remains Uncertain</h3>This regulatory initiative proceeds as the <a href="https://coincentral.com/coinbase-ceo-brian-armstrong-says-crypto-clarity-is-coming-with-or-without-clarity-act/" rel="noopener noreferrer nofollow">CLARITY</a> market structure legislation continues to languish in the upper chamber. Observers anticipate a procedural cloture vote when legislators reconvene following the August recess in September.According to Bloomberg’s reporting, the custody framework represents part of the commission’s comprehensive strategy to implement the Trump administration’s digital asset policy objectives amid sluggish congressional progress.Following White House evaluation, the proposal will return to the commission for consideration. Commissioners must then vote on whether to release the framework for public comment, which would initiate a period allowing industry stakeholders and interested parties to submit formal responses.Regulators have not announced a specific timeframe for when commissioners might conduct that vote.The post <a href="https://blockonomi.com/sec-advances-new-crypto-custody-framework-to-white-house-for-review/" rel="noopener noreferrer nofollow">SEC Advances New Crypto Custody Framework to White House for Review</a> appeared first on <a href="https://blockonomi.com" rel="noopener noreferrer nofollow">Blockonomi</a>.

SEC Advances New Crypto Custody Framework to White House for Review

Table of Contents

Blockonomi

Other articles published on Aug 27, 2026

SpaceX Stock Rises Overnight: Analyst Flags SpaceX Hyperscaler Status

Bitcoin’s bull case grows as U.S. debt tops $40T

Bitcoin Below $79,000 as XRP Leads Losses on Fed Hike Bets

USD/CAD Edges Higher Toward 20-Day EMA as US-Canada Trade Tensions Escalate

Bitcoin Price Stalls Near $80,000: ETF Inflows and Whale Demand Signal Underlying Strength

BlackRock Cuts IBIT In-Kind Bitcoin Minimum 96% to $1 Million

Join our free newsletter for daily crypto updates!