The U.S. Securities and Exchange Commission is preparing a rule intended to clarify how crypto assets can be held by broker-dealers and investment advisers. The proposal would address custody standards for both tokens that are treated as securities and those that are not.
According to the source report, the rule is meant to explain how broker-dealers could custody non-security crypto assets without needing separate registration, while also defining which institutions investment advisers may use to hold client crypto assets, including state-chartered trust companies.
A broader custody framework
The planned framework is designed to bring more certainty to a part of the market that has remained difficult for traditional financial firms to navigate. By setting out custody expectations across different types of crypto assets, the SEC is seeking to create a more usable structure for firms that already operate in securities markets.
The proposal would span crypto assets that qualify as securities as well as those that do not. In practical terms, the effort is aimed at allowing traditional securities intermediaries to use blockchain-based systems and to hold and trade crypto assets with less regulatory friction.
What the rule would clarify
For broker-dealers, the central question is how they may hold non-security crypto assets without having to obtain a separate registration. For investment advisers, the proposal would identify the types of custodial institutions they are permitted to use for client crypto holdings.
The institutions under consideration include state-chartered trust companies, a category the SEC has already addressed through interim action. The new rule would pull these issues into a more formal and comprehensive framework rather than leaving them to piecemeal guidance.
Interim guidance already in place
The SEC has already taken preliminary steps while the broader rule is being prepared. In September 2025, investment advisers were permitted to use state-chartered trust companies as qualified custodians for crypto assets.
Later, in December 2025, SEC staff issued a statement covering crypto custody for broker-dealers. Those measures did not amount to the full rule now being prepared, but they established signposts for how the agency was approaching custody questions for market participants.
Process and next step
The rule is expected to be formally released after review by the White House, followed by a public comment period. That means the proposal is nearing a public stage, but the final shape of the framework may still change after outside feedback and further review.
The effort is described in the source report as a foundational part of a longer-term crypto regulatory structure. It is also intended to help clarify how regulators treat stablecoins and other non-security crypto assets within a framework meant to better reflect how the market operates today.
Source: en.bloomingbit.io