SEC Advances Crypto Custody Rules for Investment Advisers | Crypto ETF News
Crypto ETF news: SEC Advances Crypto Custody Rules for Investment Advisers. This update explains what changed, why it matters for institutional adoption, market flows, and investor sentiment, and what the crypto market should watch next.
Institutional And ETF Update
The US Securities and Exchange Commission (SEC) is moving forward with plans to overhaul custody rules for investment advisers and investment companies, potentially giving institutions greater clarity on how they can hold crypto assets for clients while complying with federal securities rules.The proposed rule was sent on Aug. 25 to the Office of Information and Regulatory Affairs (OIRA), part of the White House Office of Management and Budget, for review before it can move back to the SEC and potentially be released for public comment.SEC submits “Amendments to the Custody Rules” to OIRA. Source: Reginfo.govAccording to the SEC’s regulatory agenda, the agency is considering changing existing rules or introducing new ones under the Investment Advisers Act and Investment Company Act. The changes would cover how investment advisers and funds hold client assets, including crypto.The regulator said the changes are intended to clear up uncertainty around how companies can hold crypto for clients while staying within its rules. The proposal has not yet been made public, and the White House Office of Management and Budget can request changes before sending it back to the SEC. The commission would then vote on whether to release it for public comment.As Bloomberg reported, the proposed rule is part of the agency’s broader push to advance the Trump administration’s digital asset agenda as the CLARITY market structure bill remains stalled in the Senate. The bill is expected to face a cloture vote after lawmakers return from the August recess in September.Related: CFTC follows SEC in scrapping ‘no-deny’ policy for settlementsSEC shifts from crypto enforcement to rulemakingThe SEC has taken a more crypto-friendly approach since Paul Atkins became chair in 2025, shifting its focus from enforcement actions toward developing clearer rules for the industry. Atkins vowed to end the agency’s previous “regulation through enforcement” approach and said policymaking should instead be carried out through formal rulemaking.The shift has also been reflected in enforcement. The SEC dismissed several cases against major crypto companies in 2025, including its lawsuit against Coinbase, as it moved to reshape its approach to digital assets.Magazine: SEC’s proposed crypto rules probably won’t spark new ICO boomCointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.
Why This ETF News Matters
First, this development may affect institutional demand, exchange flows, market liquidity, and broader investor confidence. In addition, it may influence custody trends, fund positioning, and future crypto product approvals. As a result, traders and investors should watch the next moves closely.
What To Watch Next
Watch for filing updates, approval decisions, inflow and outflow data, custody changes, and asset manager commentary. In particular, any new developments involving BlackRock, Grayscale, Fidelity, or major spot ETF products could directly affect the broader crypto market.
