The U.S. Securities and Exchange Commission has advanced a proposed rule on crypto-asset custody for broker-dealers and investment advisers to the White House review stage. The proposal must clear the Office of Management and Budget before the SEC can formally publish it and open a public comment period. Taylor Lindman, senior adviser to the SEC’s Crypto Task Force, said the framework would allow broker-dealers to hold non-security crypto assets without separate special registration and clarify which qualified institutions investment advisers may use for client assets. It would also recognize state-chartered trust companies as qualified custodians, formalizing the SEC’s September 2024 action. The proposal consolidates interim measures, including a December 2024 staff statement on broker-dealer custody. It differs from a 2023 proposal under former SEC Chair Gary Gensler that would not have recognized crypto firms as qualified custodians and was later scrapped after President Donald Trump returned to the White House. The initiative is part of a wider SEC effort to build a digital-asset framework amid delays in congressional legislation, alongside work on crypto issuance and tokenized-securities trading. Final content may change during White House review and the subsequent comment process, while technical and capital requirements could slow coordination among market participants.