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      U.S. SEC Advances Cryptocurrency Custody Rules

      Taylor Lindman, the Chief Legal Counsel of the U.S. Securities and Exchange Commission (SEC) Crypto Working Group, announced at the CoinDesk Policy & Regulation event in Washington that the SEC is progressing with new rules for the custody of cryptocurrency assets. The proposed regulations, which have been submitted to the Office of Management and Budget (OMB) for review, are designed to clarify how investment companies and broker-dealers can hold non-securities crypto assets without requiring special registration.

      The proposal aims to inform the market regarding the custody of crypto assets, allowing investment advisors to store client assets in state-chartered trusts. Lindman indicated that once the OMB review is complete, the SEC will formally present the proposal and invite feedback from industry stakeholders and the public. Additionally, an employee statement is expected to be issued in December 2025 to guide broker-dealers on crypto custody matters prior to the implementation of the new rules.

      Lindman emphasized that the SEC's recent initiatives are focused on laying the groundwork for a more structured approach to cryptocurrency regulation. This includes previously proposed rules for crypto issuance and exemptions for tokenized securities. The SEC aims to ensure that existing securities intermediaries and market participants can confidently utilize blockchain technology for holding and trading crypto assets. The agency's earlier attempts at establishing custody rules were halted in 2023, but a new leadership supportive of cryptocurrency has since been appointed.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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