SEC Proposes Crypto Custody Rules to White House

This signals a shift from legislative gridlock to executive-branch rulemaking, potentially accelerating custody standards regardless of the Clarity Act's fate. The proposal's direct path to the White House suggests custody is a priority area where regulators see actionable risk, affecting exchanges, custodians, and institutional players who rely on clear safekeeping rules. The open question is whether this rulemaking will align with or diverge from the stalled congressional efforts, creating a potential patchwork of compliance requirements. Watch for the proposal's specific technical requirements and how they interact with existing state-level custody frameworks.