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New Custody Rule Is On Its Way

Posted on August 28, 2026August 27, 2026 by Doug Cornelius
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The Securities and Exchange Commission is continuing its quest to bend over backwards to get crypto assets to the masses. Paul Atkin’s run SEC has sent a new custody rule to the Office of Information and Regulatory Affairs, part of the Office of Management and Budget, for review before publication.

The proposed rule would “improve and modernize the regulations around custody of investment adviser client assets and fund assets, including to address crypto assets.” Investment advisers and investment companies have had trouble complying with the custody rule for crypto assets. Much of the infrastructure is not set up for them.

It’s the latest sign of the SEC marching forward with the Trump administration’s pro-crypto agenda. Afterall, he has made billions from crypto while in office.

This proposed rule sounds like the opposite approach from the 2023 Safeguarding Advisory Client Assets that would have made it nearly impossible for advisers to hold crypto assets in client accounts. That rule went so far that it made compliance nearly impossible for most alternative assets. I was pulling my hair out trying to figure out what to do with it if it was enacted.

Hopefully the new rule won’t swing so far the other way that client investments are at risk. I mean other than the terrible risk that comes with crypto assets.

Sources:

  • SEC advances crypto custody rule changes for White House review
  • SEC Preps Overhaul of Crypto Custody Rules for Investment Firms by Lydia Beyoud
  • Amendments to the Custody Rules RIN: 3235-AN46
  • Pending review of 3235-AN46
  • Safeguarding Advisory Client Assets (2013)
  • Risk Alert on Digital Asset Securities (2021)

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