The US Securities and Exchange Commission (SEC) submitted a draft amendment on crypto custody rules to the White House Office of Management and Budget (OMB) on August 25, 2026. The new custody rule framework focuses on compliance guidance for institutional fund managers. The document will govern how Registered Investment Advisors (RIAs) and various investment firms manage and safeguard client digital assets. These digital asset custody regulations apply not only to cryptocurrencies, but also encompass all client funds directly interacting with the digital asset ecosystem.
Awaiting Approval at Two Levels
Although the amendment draft has reached the White House, wealth management industry players cannot yet review the new provisions. Full details regarding the new digital asset custody obligations will be released to the public once the White House executive review is complete. Beyond clearing the Office of Management and Budget, the draft amendment must also be approved internally by the securities regulator.
For the new rules to become mandatory guidance for investment firms, the proposed amendment requires final approval from SEC commissioners. The formal adoption of these crypto management rules must be decided through an open vote by the commissioners. Until these two bureaucratic stages are completed, registered investment advisors must wait for clarity regarding future standards for safeguarding client assets.
Two Regulatory Changes at Once
The submission of the crypto custody rules to the executive branch comes alongside SEC efforts to reshape jurisdictional boundaries for traditional market instruments. The commission filed a separate proposal to amend Rule 3a12-8 under the Securities Exchange Act of 1934. This proposed amendment is specifically designed to exempt European Union government debt futures from the scope of US securities regulations.
Through this European bond rule amendment, the SEC is reallocating supervisory authority among US capital market regulators. The securities agency plans to transfer full jurisdiction over European debt futures to the Commodity Futures Trading Commission (CFTC). The decision to hand over foreign debt instrument oversight to the CFTC is now pending implementation, in tandem with the White House review process for client crypto custody regulations. Reported by crypto.news.
Also read: UK Police Seize 20.21 BTC Linked to Darknet - Suspect Died Before Assets Were Confiscated
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.
