The U.S. Securities and Exchange Commission is advancing its crypto regulatory agenda through custody rules designed to integrate digital assets into the existing securities industry framework, according to Taylor Lindman, chief counsel of the SEC's Crypto Task Force.
Lindman said the SEC's custody proposal—which covers both investment firms and broker-dealers—is under review by the White House's Office of Management and Budget. Once cleared, the SEC can formally propose the rule for public comment.
The custody rules aim to clarify how broker-dealers can hold non-security crypto assets without requiring special registration and where investment advisers can place client assets, such as in state-chartered trusts.
Integration Focus
"The big picture with this is we're trying to assimilate the existing securities intermediaries and our existing market participants into a world where they feel comfortable utilizing blockchain, even holding crypto assets, transacting crypto assets, and that includes crypto assets that are securities as well as crypto assets that are non-securities," Lindman said at the CoinDesk Policy & Regulation event in Washington.
The SEC previously issued a staff statement in December providing interim guidance for broker-dealers on crypto custody pending final rules. In September 2025, the agency also allowed investment advisers to use state-chartered trusts as qualified crypto custodians for customer assets.
Prior Efforts and Change in Direction
The SEC's earlier custody rule attempt in 2023, pursued under then-SEC Chair Gary Gensler, proposed that crypto firms themselves would not qualify to custody assets. That effort was scrapped when the Trump administration took office and appointed new leadership at the agency.
Broader Regulatory Framework
Lindman characterized the SEC's broader crypto agenda—which includes proposed rules for crypto offerings and exemptions for tokenized securities—as "foundation laying" work that establishes how the agency categorizes stablecoins and non-security crypto assets within a regulatory framework for future development.
