SEC chief crypto counsel details pending custody rule

The SEC's chief crypto counsel, Taylor Lindman, said the agency's long-awaited crypto custody proposal — covering both investment advisers and broker-dealers — is under White House review, according to remarks at CoinDesk's Policy & Regulation event in Washington. The rule is meant to show how a broker-dealer can hold a non-security crypto asset without a special registration and where advisers can park client assets, such as with a state-chartered trust.

Lindman framed the effort as assimilating existing securities intermediaries into a world where they feel comfortable holding and transacting crypto, including non-security assets, rather than requiring bespoke structures. The proposal would replace the 2023 custody rule under former Chair Gary Gensler, which never reached final form and was scrapped under the new administration. Until it is finalized, the SEC's December staff statement on broker-dealer custody of crypto remains the interim approach.

• Once cleared by the White House's Office of Management and Budget, the SEC can formally propose the rule for public comment.
• Lindman also cited the agency's crypto-offering rule and tokenized-securities exemption as part of its "foundation laying" agenda.