Bitcoin Magazine: SEC Sends Proposal to White House to Modernize Crypto Custody

The Securities and Exchange Commission has sent a proposal to the White House that aims to “clarify the framework for the custody of crypto assets” for investment advisers and companies.

In a rule change sent Tuesday, the regulator said it wanted to “improve and modernize the regulations” governing custody in the crypto sector, an area that has remained a practical pressure point for firms that need clear standards for holding client assets and for meeting existing compliance obligations.

The proposal arrives after a vote on the long-awaited Clarity Act was delayed. Even so, regulators such as the SEC and the Commodity Futures Trading Commission have said they will continue working to shape crypto policy.

JUST IN: SEC has sent a new proposal to the White House concerning "amendments to the custody rules" to "clarify the framework for the custody of crypto assets" pic.twitter.com/c45BK1tlok — Bitcoin Magazine (@BitcoinMagazine) August 26, 2026

JUST IN: SEC has sent a new proposal to the White House concerning "amendments to the custody rules" to "clarify the framework for the custody of crypto assets" pic.twitter.com/c45BK1tlok

“This rulemaking would clarify the framework for the custody of crypto assets for investment adviser and investment companies, as well as make other modernizations needed to remove burdens from certain outdated provisions that are no longer needed to provide investor protection given the evolution in the markets and security trading and holding practices,” the proposal read.

Pro-crypto lawmakers had hoped to pass the Clarity Act before Congress broke for the August recess, but the vote slipped to September after Democrats objected to the latest draft.

Some Republican senators, including Senator Cynthia Lummis, accused some lawmakers of deliberately slowing the process.

Despite the delay, pro-crypto regulators have said they intend to keep moving forward. CFTC Chairman Michael Selig has said he will proceed with rulemaking whether or not the Clarity Act is enacted, with the goal of finalizing rules before the administration’s term ends.

Earlier this month, the SEC also proposed a framework that would allow token issuers to raise money in the U.S. without violating securities laws.

President Donald Trump campaigned on a platform of supporting the crypto industry and received major backing from Silicon Valley entrepreneurs. Since taking office, regulators have adopted a markedly different approach to overseeing the digital asset sector.

Last week, the president urged lawmakers to pass the Clarity Act. SEC Chair Paul Atkins has said he is “committed to supporting Congress in advancing” the bill.

This post SEC Sends Proposal to White House To Modernize Crypto Custody first appeared on Bitcoin Magazine and is written by Mathew Di Salvo.