SEC crypto custody rule overhaul sent to White House for review

This procedural step suggests the SEC is nearing a formal proposal on custody standards for digital assets, which could finally give investment advisers and funds clearer compliance parameters. The significance lies in the potential shift from ad-hoc practices to codified rules, affecting how custodians and fiduciaries structure their operations. What matters next is whether the final rule balances safeguarding client assets with operational feasibility for qualified custodians. The open question is how the SEC defines 'custody' for decentralized or self-custodied assets, which will determine the rule's real-world impact on institutional adoption.