The U.S. Securities and Exchange Commission (SEC) submitted a proposal titled “Amendments to the Custody Rules” to the White House’s Office of Information and Regulatory Affairs (OIRA) on August 25, 2026. The draft rules outline formal guidance for investment advisers and fund managers regarding regulatory procedures for safeguarding clients’ crypto assets.
Submitting the document to OIRA, which operates under the White House OMB, underscores a significant shift in government policy. Since SEC Chair Paul Atkins took office in early 2025, the commission has steadily pivoted its crypto regulatory approach from heavy enforcement toward formal rulemaking. This new direction aligns with the digital asset agenda under the Trump administration, which prioritizes regulatory certainty.
Shifting from Litigation to Formal Rulemaking
The commission’s change in stance became evident when the SEC decided to drop its lawsuit against crypto exchange Coinbase, alongside closing other major crypto industry cases since 2025. The agency’s attention has now fully turned toward drafting regulatory amendments under the Investment Advisers Act and the Investment Company Act.
The proposed custody rules have the potential to reshape the operating landscape for traditional banking. With definitive federal guidance in place, investment managers gain clear legal grounds to hold and manage clients’ digital asset products without running afoul of compliance boundaries.
Although the filing is now in the hands of the White House, the public will have to wait to see its contents. The custody proposal has not yet been made public, as OIRA holds the authority to request revisions before returning it to the SEC. Once internal review stages conclude, the commissioners will hold a formal vote to determine whether to release the draft for public notice and comment.
Hurdles on the Senate Floor
While the SEC’s regulatory momentum advances steadily along executive tracks, comprehensive nationwide crypto legislation faces roadblocks in Congress. The CLARITY Act, envisioned as foundational legislation, remains stalled on the Senate floor.
The legislative draft must still clear procedural hurdles before passage. The full Senate is scheduled to hold a cloture vote to break the debate impasse once the August recess concludes in early September.
For mainstream financial advisers and corporate fund managers, formal federal rulemaking carries significant weight. The custody draft under White House review serves as a vital bridge facilitating institutional capital inflows into the crypto space on solid legal ground.
Reported via Cointelegraph.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
