The U.S. Securities and Exchange Commission released proposed rules covering the custody of crypto assets on October 1, 2026, according to the Lowenstein Crypto Brief published on JD Supra.
The proposal continues the agency’s effort to build a crypto framework through rulemaking after the CLARITY Act failed to advance in the Senate. Custody rules are central to how advisers and broker-dealers hold client crypto, and to how investors are protected if a custodian fails.
Context
The proposal follows the SEC’s August “Regulation Crypto Assets” release and its September “Innovation Exemption” for certain tokenized-stock trading, part of a broader push to clarify how existing securities laws apply to digital assets.
What to watch: the public comment period and how the final rule interacts with existing custody guidance and state law.
