The U.S. Securities and Exchange Commission sent a proposal to amend custody rules for investment advisers and investment companies to the Office of Information and Regulatory Affairs on August 25. The White House Office of Management and Budget must review the proposal before the SEC can vote on it and open it for public comment.

The amendment would clarify how firms may hold cryptocurrency assets for clients under the Investment Advisers Act and the Investment Company Act. The SEC says the changes are intended to eliminate uncertainty about custody of digital assets. The rule has not been made public.

The SEC’s regulatory agenda lists the amendment as part of a broader effort to develop clearer rules for digital assets. Chair Paul Atkins, who assumed office in 2025, has moved the agency away from enforcement-focused actions and toward formal rulemaking. Several lawsuits, including the SEC’s case against Coinbase, have been dismissed.

The initiative follows the administration’s digital asset agenda, even though the CLARITY market structure bill remains stalled in the Senate and is slated for a cloture vote after the August recess.

The SEC will decide whether to publish the proposal for comment, a decision that may shape custody practices and the legislative path for the market structure bill.