Atkins pushes custody rules through OIRA while the Senate stalls on CLARITY

The SEC has submitted a proposal to the White House to rewrite how investment advisers and funds hold crypto for clients.

The CLARITY market-structure bill is stalling in the Senate, but the SEC is progressing on regulation through its own rulemaking.

Selig will finalize CFTC rules with or without CLARITY

The rule, called “Amendments to the Custody Rules,” was sent to the Office of Information and Regulatory Affairs on August 25. OIRA is the White House Office of Management and Budget arm that reviews federal regulations before they are published.

The proposal is not yet public, and OMB can send back requested changes before it goes back to the SEC.

The commission would not vote on whether to open it up for public comment until then. In the agency’s own words, the effort would “clarify the framework for the custody of crypto assets for investment adviser and investment companies” and remove “outdated provisions” the SEC says no longer serve investor protection.

The SEC said advisers have asked how they can legally hold clients’ digital assets under current rules.

The changes will affect the Investment Advisers Act and the Investment Company Act, which regulate how client assets are held. Lawmakers had wanted the CLARITY Act to go through before the August recess.

Democrats objected to the latest draft, so the vote slipped to September. The bill faces a cloture vote when Congress returns.

Some Republicans saw the delay as sabotage. Senator Cynthia Lummis accused unnamed colleagues of deliberately blocking the measure.

President Donald Trump, who campaigned on a pro-crypto platform, last week called on lawmakers to complete the bill. SEC Chair Paul Atkins said he is “committed to supporting Congress in advancing” it.

The SEC dropped its Coinbase case in 2025

CFTC Chairman Michael Selig said he will finalize the rules whether or not CLARITY becomes law, aiming to complete them before the end of the administration’s term in office.

The SEC is also looking at its rulebook as the faster route.

Since Atkins took over as chair in 2025, the SEC has traded enforcement for rulemaking, and he has said policy should go through formal notice-and-comment.

In 2025, the agency dropped several lawsuits against major crypto firms, including its case against Coinbase.

Earlier this month, the SEC proposed “Regulation Crypto Assets,” a proposed offering regime that would allow token issuers to raise money in the US without tripping securities law.

That builds on joint SEC and CFTC guidance from March on the application of securities rules to digital assets.

The innovation exemption that Atkins has promised to fast-track new crypto products is still missing.

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