SEC Crypto Custody Proposal Awaits White House Approval

The SEC's crypto custody proposal sits under White House review. Taylor Lindman, chief counsel of the Crypto Task Force, confirmed the timing. The agency aims to let broker-dealers hold non-security crypto without special registration. This step removes uncertainty for market participants. It aligns digital assets with traditional securities frameworks.

Lindman spoke at a CoinDesk event in Washington. He described the work as boring but necessary foundation laying. The goal is to make blockchain technology comfortable for existing intermediaries. The agency seeks to assimilate crypto into the regulated system. This approach prioritizes stability over innovation.

Custody Rules Target Broker-Dealers

The pending rule covers investment firms and broker-dealers. It clarifies where advisers can park client assets. State-chartered trusts qualify as crypto custodians. This interim measure dates back to September 2025. It provides a clear path for asset storage. The final rule will formalize these practices.

A previous custody rule from 2023 was scrapped. That version excluded crypto firms from custodian status. The current administration favors a more inclusive approach. Lindman noted the shift in regulatory philosophy. The new framework treats crypto as a standard asset class. This change reflects broader political priorities.

Broader Crypto Agenda Progresses

The SEC also advanced a tokenization exemption. This allows tokenized securities to operate smoothly. A proposed rule facilitates crypto offerings. Lindman called these steps foundation laying. They create a structure for future generations. The agency meets the market where it is.

Congress has not passed a comprehensive crypto law. The SEC fills this regulatory vacuum. The agency acts independently to provide clarity. This proactive stance reduces legal ambiguity. Firms gain confidence in the regulatory environment. The market benefits from predictable rules.