SEC sends crypto custody rule changes to White House for review - The Block

The SEC has taken a procedural step in its rulemaking process by sending proposed changes to crypto custody rules to the White House for review. Under Executive Order 12866, the Office of Management and Budget (OMB) typically reviews significant agency rules before they are published in the Federal Register. This does not mean the rules are final, but it signals that the SEC has completed an internal drafting phase and is moving toward formal publication, which will open a public comment period.

For market participants, the significance lies in the potential for clearer standards around how digital assets are safeguarded. Custody is a foundational issue for institutional investors, insurers, and public companies that hold crypto on behalf of clients. Uniform federal guidance could reduce legal ambiguity and operational risk, making it easier for traditional financial firms to engage with digital assets without relying on state-by-state interpretations.

The key detail to watch is the wording of the proposed rules when they are made public. The SEC may clarify what constitutes a qualified custodian, how private keys are handled, and what disclosures are required. Until then, the market response is likely to remain measured, as the review process itself does not change current obligations.