Key Takeaways
- • SEC Crypto Task Force Chief Counsel Taylor Lindman unveiled a two-track custody framework allowing broker-dealers to hold non-security crypto assets without special registration and clarifying where investment advisers can deposit client crypto holdings, including at state-chartered trusts.
- • The proposal now requires White House Office of Management and Budget (OMB) approval before the SEC can formally propose the rule and open a public comment period; no timeline for completion was provided.
- • Two interim measures already bridge the regulatory gap: a September 2025 SEC action permitting investment advisers to use state-chartered trusts as qualified crypto custodians, and a December 2025 staff statement guiding broker-dealers on crypto custody pending final rules.
- • The initiative represents an effort to integrate previously novel crypto assets into established regulatory frameworks, treating stablecoins and non-security crypto assets as normalized financial instruments rather than exceptional cases requiring separate registration requirements.
Summary
The SEC's Crypto Task Force advanced a significant custody framework on September 22, 2026, during remarks by Chief Counsel Taylor Lindman at the CoinDesk Policy & Regulation event in Washington, D.C. The proposal establishes dual pathways: one enabling broker-dealers to custody non-security crypto assets within existing regulatory structures without triggering additional registration obligations, and another clarifying permissible asset locations for investment advisers managing client cryptocurrency, including custody arrangements with state-chartered trusts.
Lindman characterized the initiative as a natural regulatory evolution, framing crypto assets that were once perceived as "really unique and scary" within a normalized framework that future market participants can rely upon. The proposal aims to demonstrate how regulators conceptualize stablecoins and non-security crypto assets within institutional custody models rather than treating them as exceptional instruments requiring isolated rules.
The regulatory pathway forward involves OMB review as the next critical gate. The Office of Management and Budget must clear the proposal before the SEC can issue a formal proposed rule and initiate the public comment process. The SEC did not provide a timeline for this administrative review or subsequent rulemaking phases.
The framework builds on interim measures already deployed. In September 2025, the SEC permitted investment advisers to deposit customer assets with state-chartered trusts functioning as qualified crypto custodians—a parallel accommodation on the adviser side. In December 2025, SEC staff issued guidance to broker-dealers addressing crypto custody practices pending finalization of comprehensive rules. Lindman identified these interim steps as bridging mechanisms covering the regulatory gap until the formal custody rule takes effect.
Lindman characterized the initiative as a natural regulatory evolution, framing crypto assets that were once perceived as "really unique and scary" within a normalized framework that future market participants can rely upon. The proposal aims to demonstrate how regulators conceptualize stablecoins and non-security crypto assets within institutional custody models rather than treating them as exceptional instruments requiring isolated rules.
The regulatory pathway forward involves OMB review as the next critical gate. The Office of Management and Budget must clear the proposal before the SEC can issue a formal proposed rule and initiate the public comment process. The SEC did not provide a timeline for this administrative review or subsequent rulemaking phases.
The framework builds on interim measures already deployed. In September 2025, the SEC permitted investment advisers to deposit customer assets with state-chartered trusts functioning as qualified crypto custodians—a parallel accommodation on the adviser side. In December 2025, SEC staff issued guidance to broker-dealers addressing crypto custody practices pending finalization of comprehensive rules. Lindman identified these interim steps as bridging mechanisms covering the regulatory gap until the formal custody rule takes effect.
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