Clarity for advisers
The rule would spell out what it means for an investment adviser or a fund to take custody of digital assets. Under the current framework, the treatment of these assets is often unclear, and the new rule would set the standard for how client money should be safeguarded. That includes how the assets are held and what kind of oversight is required.
The proposal's details are still under review, but the fact that the SEC has moved it to the White House suggests the agency has settled on a version it wants to push through.
The White House review
The review is a standard part of the federal rulemaking process. It's where the administration evaluates a rule for its economic impact and its fit with broader policy. The SEC doesn't typically release the full text of a rule until the review is done, so the specifics of the custody requirement remain behind closed doors.
The review isn't a rubber stamp. It can lead to changes or delays, and it's not unusual for a rule to sit in this stage for weeks.
The final hurdle
Once the White House completes its review, the SEC can publish the rule in the Federal Register. From there, it could take effect after a set period unless the regulator decides to reopen it for comment. That decision hasn't been made, and there's no public timeline for when the review will
