US Regulators Update Crypto Custody, Bank Supervision, and Swaps Rules
The SEC has advanced its crypto custody rule, the OCC and FDIC have finalized the definition of an 'unsafe or unsound' practice, and the CFTC is moving on swap execution facility rules.
Multiple US financial regulators have advanced significant rulemakings. The SEC submitted proposed amendments to its custody rules to the White House for review, which are intended to modernize the framework for investment advisers, particularly regarding crypto assets. The text is not yet public, but the agency's agenda targets October 2026 for a notice of proposed rulemaking. Separately, the OCC and FDIC issued a joint final rule defining an 'unsafe or unsound practice.' This narrows the grounds on which examiners can issue supervisory warnings, or MRAs, potentially providing more certainty for banks serving digital asset businesses by tying MRAs to practices that could cause material financial harm or violate a law. Concurrently, the CFTC proposed eliminating the order book requirement for certain swap execution facility transactions, while the comment period closed on a joint SEC-CFTC effort to clarify derivatives definitions, drawing comments on whether sports-wagering contracts qualify as swaps.