How would SEC and CFTC proposed rules change how crypto exchanges hold and trade customer assets?

In development Published October 7, 2026 1 min read

These are proposals, not final rules, and the SEC’s custody proposal covers funds and advisers rather than exchanges directly. On October 1, 2026, the SEC proposed rules on how investment companies and registered advisers hold client crypto. On August 18, 2026, it proposed Regulation Crypto Assets, with a 60-day comment period after Federal Register publication.

The full answer

What did the CFTC say it is contemplating?

These are contemplated rules, not adopted ones. Nothing in them is in force as of October 7, 2026.

What has the SEC proposed on custody?

On October 1, 2026, the SEC proposed new rules and amendments on how regulated investment companies may custody crypto securities and similar investments, and how registered investment advisers may custody client crypto funds and securities. The proposal also amends related reporting and recordkeeping requirements [1]. It targets funds and advisers, so it differs from the exchange-focused items in the CFTC release.

How does this fit with earlier SEC steps?

On August 18, 2026, the SEC proposed Regulation Crypto Assets. Its public comment period runs 60 days after the proposing release appears in the Federal Register [2]. Earlier, on September 17, 2025, the SEC approved generic listing standards. Under them, exchanges may list and trade commodity-based trust shares that meet the standards without first filing a proposed rule change under Section 19(b) [3].

Why are the agencies acting by rule and not by statute?

FinTech Weekly reported on September 23, 2026 that the Digital Asset Market Clarity Act’s motion to proceed fell short of 60 votes on September 15, and that ethics provisions, not the SEC and CFTC split, sank it [4]. With no statute passed, rulemaking is the route the agencies are using. Readers who want a steady way to follow this can see trustworthy XRP news sources.

What is the strongest caution about these proposals?

Proposals can change or lapse before adoption. Public comment follows each one, and the final text may differ from what was first described. The trading side of the picture is also separate: how much of reported volume is real is covered in where XRP trades, and the ledger itself is explained in what the XRP Ledger is. For why some in crypto distrust regulated routes to XRP, see why crypto critics dislike XRP.

What we know

On October 1, 2026, the SEC proposed new rules and amendments on how regulated investment companies may custody crypto securities and similar investments, and how registered investment advisers may custody client crypto funds and securities, with related reporting and recordkeeping changes (SEC proposal S7-2026-35).
On August 18, 2026, the SEC proposed Regulation Crypto Assets. Its comment period stays open for 60 days after the proposing release is published in the Federal Register (SEC press release, August 18, 2026).
On September 17, 2025, the SEC approved generic listing standards that let exchanges list commodity-based trust shares meeting the standards without a separate Section 19(b) filing (SEC press release, September 17, 2025).
FinTech Weekly reported on September 23, 2026 that the Senate motion to proceed on the Digital Asset Market Clarity Act fell short of 60 votes on September 15, and that ethics provisions, not the SEC and CFTC split, sank it.

What we reason Analysis

The SEC custody proposal covers funds and investment advisers, while the CFTC release describes exchange-side items. Read together, they point to rulemaking by agency rather than a single statute, which fits the FinTech Weekly account of the failed Senate vote.

What's still open

As of October 7, 2026, neither agency has adopted final rules from these proposals, and no final effective date has been published.
The full text of the CFTC’s contemplated rules, including which exchanges and which pooled accounts they would cover, has not been summarized here beyond the CFTC’s own headline description.
Which proof-of-reserves requirements, listing standards for tokens prone to manipulation, and futures commission merchant trade-routing rules would the CFTC actually propose for crypto exchanges that hold customer property in pooled accounts?

In plain English

Two US regulators have put forward draft rules for crypto. The securities regulator has separately proposed rules on how funds and advisers store crypto for clients. None of this is final yet.

Sources

Proposed rules S7-2026-35 on crypto custody — U.S. Securities and Exchange Commission, 2026-10-01 Primary
SEC Proposes New Regulation Crypto Assets — U.S. Securities and Exchange Commission, 2026-08-18 Primary
SEC Approves Generic Listing Standards for Commodity-Based Trust Shares — U.S. Securities and Exchange Commission, 2025-09-17 Primary
CLARITY Act cloture vote fails 49-50 — FinTech Weekly, 2026-09-23 Secondary

Update log

October 7, 2026 — Published.

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