The SEC has formally advanced proposed changes to how regulated firms can hold crypto assets, sending its “Amendments to the Custody Rules” to the White House’s Office of Information and Regulatory Affairs on August 25th.
That step means the process has moved beyond commentary and into official federal rulemaking, with the proposal classified as economically significant, a category used for measures that could have broad economic impact or materially affect the sector.
The main change under review targets how investment advisers and funds custody digital and traditional assets, signaling a push to improve and modernize protections under both the Investment Advisers Act and the Investment Company Act.
For regulated advisers, the likely flashpoints are who qualifies to hold those assets and under what controls. The operational impact could be significant, especially if advisers must shift providers, change fund workflows, or overhaul compliance systems.
The timeline now turns to OIRA review, publication of the formal proposal, a public SEC vote, and then the public comment period, where the key terms and compliance details will be debated in the open.