The U.S. Securities and Exchange Commission has sent a proposed rule on crypto broker-dealer requirements to the White House for regulatory review, marking a possible step toward formal standards for how registered firms handle digital assets. The submission was made on Nov. 3, 2026, according to the SEC’s regulatory filing.
The unpublished proposal could amend four existing broker-dealer rules covering capital, customer protection, and recordkeeping. Because the draft text has not been released by the SEC or the White House Office of Information and Regulatory Affairs, the practical effect of the proposal is still unknown.
Four existing SEC rules are under review
The proposal is titled “Amendments to Broker-Dealer Financial Responsibility and Recordkeeping and Reporting Rules Regarding Crypto Assets” and is identified as RIN 3235-AN48. The SEC’s agenda indicates that Rules 15c3-1, 15c3-3, 17a-3, and 17a-4 are the provisions that may be changed.
Those rules govern core broker-dealer obligations. Rule 15c3-1, the net capital rule, requires firms to maintain liquid resources. Rule 15c3-3 sets customer protection requirements, including safeguards for customer securities and reserve accounts. Rules 17a-3 and 17a-4 cover the records firms must create and preserve for regulatory review.
Applying those frameworks to crypto raises operational questions that do not exist in the same form for traditional securities, including distributed ledger records, private-key control, transaction history, and how customer-held digital assets should be treated under existing securities requirements.
Formal rulemaking would carry more weight than staff guidance
The filing represents another crypto regulatory initiative under SEC Chair Paul Atkins. Unlike staff interpretations, a completed rulemaking could create binding obligations for registered broker-dealers that offer or hold cryptocurrencies alongside traditional financial assets.
The SEC had already addressed part of the issue in a December 2025 staff statement on custody arrangements for crypto asset securities. That guidance described conditions under which broker-dealers could meet certain possession requirements through direct access to customer assets on distributed ledger networks, subject to operational and security safeguards.
The same 2025 statement also discussed regulatory capital treatment, saying certain holdings of bitcoin and ether could receive a capital haircut, while qualifying payment stablecoins could receive a smaller one. But guidance of that kind is not the same as an adopted rule, which would normally follow publication, public comment, and commission approval.
Political timing adds another layer of uncertainty
The SEC’s submission came on the same day Democrats won control of both chambers of Congress in the Nov. 3 midterm elections. Republicans still control the outgoing 119th Congress, but the 120th Congress begins on Jan. 3, 2027, when Democrats will gain more influence over oversight, appropriations, and legislative priorities affecting financial regulators.
That shift does not stop the SEC from moving ahead on its own authority under Sections 15(c) and 17(a) of the Securities Exchange Act of 1934. Still, a Democratic Congress could put pressure on the initiative through hearings, document requests, funding negotiations, or legislation aimed at narrowing the agency’s room to act.
Lawmakers could also try to overturn a completed rule through the Congressional Review Act. Any such effort would face the additional hurdle of President Donald Trump’s veto power, with an override typically requiring a two-thirds vote in both chambers.
What comes next for firms and the market
For broker-dealers and crypto businesses, the review leaves key compliance questions unanswered. Capital rules can affect how much business a firm is able to conduct, custody standards shape how customer assets must be protected, and recordkeeping requirements determine what documentation regulators can later inspect.
The SEC’s agenda had previously pointed to a July 2026 notice of proposed rulemaking, but no public release date has been set for the current draft. Until the proposal is published, it is not possible to tell whether the final approach would ease compliance in some areas, add new restrictions, or do both at once.
The next confirmed step is completion of the White House review and public release of the proposed amendments, if the process advances. After that, any formal rule would typically face public comment and further SEC action, while Congress and future administrations could still shape how durable the framework becomes.
Source: news.bitcoin.com