SEC’s New Crypto Plan at the White House: What Will Change for Investment Firms?
The SEC’s proposal aimed at regulating how investment firms and broker-dealers custody crypto assets is under review at the White House. The agency wants to clarify the framework under which existing financial institutions can work with crypto.
Speaking at CoinDesk’s event in Washington, SEC Crypto Task Force Chief Counsel Taylor Lindman said the initiative addresses both crypto assets that qualify as securities and those outside that scope.
The proposal is being reviewed by the Office of Management and Budget (OMB) within the White House. Once this stage is complete, the SEC could formally publish the text as a proposal and open it to feedback from the industry and the public. Therefore, no new custody rule has taken effect yet.
Under what conditions will broker-dealers be able to hold crypto?
According to Lindman, one goal is to clarify how broker-dealers can hold crypto assets that are not considered securities without needing a separate special registration. This objective does not mean that all recordkeeping or oversight obligations for these firms will be eliminated.
For investment advisers, the aim is to clarify which custodians may hold clients’ crypto assets. Lindman cited state-licensed trust companies as an example in this context.
The broader goal is to create a regulatory framework that existing financial intermediaries can rely on when using blockchain technology, holding crypto assets, and transacting in those assets. The statements outline the proposal’s direction; the final provisions have not yet been finalized.
Rules will replace the interim approach
Lindman also pointed to guidance issued by SEC staff in December that was intended to guide broker-dealers on crypto custody until new rules are established. He also recalled the September 2025 step allowing investment advisers to hold client assets with state-licensed trust companies as qualified crypto custodians.
This initiative reflects an approach different from the SEC’s 2023 custody proposal. Then-Chair Gary Gensler argued that crypto companies themselves would not meet the custody requirements. That proposal was shelved without becoming a final rule.
Lindman described the broader agenda, which also includes other steps related to crypto offerings and tokenized securities, as an effort to establish a long-term regulatory foundation. The statements cited did not provide a specific date for when the custody proposal will be published.