SEC Cryptocurrency Broker-Dealer Rule Proposal Submitted for White House Review: Involves Four Securities Regulations

On November 3, 2026, the U.S. Securities and Exchange Commission (SEC) submitted a proposal for cryptocurrency broker-dealer rules to the White House, seeking regulatory review. The proposal involves four provisions under the Securities Exchange Act, covering broker-dealer capital, customer asset protection, and recordkeeping, with no public draft or confirmed release date currently available. The proposal pertains to rules 15c3-1, 15c3-3, 17a-3, and 17a-4, which relate to net capital requirements, customer asset protection, recordkeeping, and record retention.

The staff statement released by the SEC in December 2025 provided guidance on certain cryptocurrency asset custody arrangements but did not amend the relevant rules or establish comprehensive custody standards. The Democratic Party won a majority in both houses of Congress in the midterm elections on November 3, 2026, and is expected to gain control in the new Congress starting on January 3, 2027. Congressional Democrats can oversee the proposal through hearings, document requests, and funding negotiations, but whether the proposal will pass still depends on subsequent regulatory processes.