Next for the U.S. SEC: Agency's chief crypto counsel illuminates path for custody

Taylor Lindman, chief counsel of the SEC's Crypto Task Force, said the agency is preparing a custody rule for crypto assets that would cover broker-dealers and investment advisers and is currently under White House (Office of Management and Budget) review. Lindman told a CoinDesk Policy & Regulation audience that the rule aims to clarify how market participants can hold both security and non-security crypto assets, and that the SEC is pursuing broader foundational work on tokenized securities and crypto offerings.

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Next for the U.S. SEC: Agency's chief crypto counsel illuminates path for custody

Why It Matters

A formal SEC custody rule would create regulatory clarity for intermediaries and advisers handling crypto assets, affecting where and how client assets can be held. The proposal is part of a wider SEC effort to integrate crypto into existing securities frameworks while issuing technical, foundational rules for market participants.

Key Facts

Speaker: Taylor Lindman, chief counsel, SEC Crypto Task Force
Event: CoinDesk Policy & Regulation event in Washington, D.C.
Regulatory item: SEC custody proposal for broker-dealers and investment advisers
Current status: Proposal under review by the Office of Management and Budget at the White House
Related guidance: SEC staff statement in December offered interim direction to broker-dealers on crypto custody

The Securities and Exchange Commission is preparing a formal rule on custody of crypto assets that would apply to both broker-dealers and investment advisers, SEC Crypto Task Force chief counsel Taylor Lindman said at a CoinDesk Policy & Regulation event. According to Lindman, the proposal is currently under review by the Office of Management and Budget at the White House; once cleared, the agency expects to publish the rule for public comment. Lindman described the custody effort as intended to make clear how market intermediaries can hold crypto assets — including non-security tokens — without requiring unusual new registrations, and to identify permissible places for advisers to park client assets, such as state-chartered trusts. He cited the SEC's December staff statement as an interim measure to guide broker-dealers on custody practices while the formal rulemaking proceeds, and referred to the agency's September 2025 decision to treat state-chartered trusts as qualified crypto custodians for investment advisers. The counsel framed the custody rule as part of a broader SEC push to assimilate crypto into existing regulated markets. Alongside the custody proposal, Lindman pointed to recent agency work such as a proposed rule to allow crypto offerings and a new exemption designed to facilitate tokenized securities. He characterized much of the agency's current work as "foundation laying," focusing on technical steps to integrate previously novel crypto assets into a regulatory framework. Lindman also contrasted this effort with a prior 2023 custody initiative, which had been pursued under different SEC leadership and had taken a stricter approach to which entities could serve as custodians; that 2023 effort did not reach final form and was shelved after a change in administration. The current rulemaking, he said, aims to bring existing securities intermediaries and market participants into a framework where they can more comfortably use blockchain technology and hold or transact in crypto assets.