SEC Submits Crypto Broker-Dealer Proposal Covering Four Rules to White House

SEC’s Crypto Broker-Dealer Proposal Reaches OIRA

The U.S. Securities and Exchange Commission (SEC) has placed a proposed broker-dealer rule for crypto assets before the White House, logging it for formal regulatory review on November 3, 2026. The Office of Information and Regulatory Affairs (OIRA), the White House office that vets draft federal regulations and sits inside the Office of Management and Budget, recorded the submission under identifier RIN 3235-AN48 with the stage marked “proposed rule,” the status “review” and the classification “economically significant.” Its review record is public on Reginfo.gov.

The proposal covers amendments to financial responsibility, recordkeeping and reporting rules for broker-dealers handling crypto assets, and it names four securities rules. Rule 15c3-1, the net capital rule, requires broker-dealers to hold enough liquid resources to meet their obligations. Rule 15c3-3, the customer protection rule, governs how client securities are safeguarded, including reserved accounts. Rules 17a-3 and 17a-4 define which records broker-dealers must create and how long they must retain them. The filing also references “other broker-dealer financial responsibility rules,” so the scope is not limited to the four named items. That breadth matters for any registered brokerage or crypto exchange that wants to handle digital assets alongside traditional securities.

Staff Guidance Sets the Operative Baseline

Adopted rules are not yet in force for this area; the operative baseline is staff guidance. In December 2025, the Division of Trading and Markets said a broker-dealer could meet certain possession or control requirements under Rule 15c3-3 by holding crypto asset securities directly on a layer 1 blockchain protocol, provided it protects private keys, maintains documented custody procedures and prepares contingency plans for technical disruptions. The staff statement also weighed risks including a hard fork in crypto networks, governance changes and attacks that could interrupt transaction processing. It covered specific possession requirements under Rule 15c3-3 only, and it did not amend that rule or set a comprehensive custody standard across every category of crypto asset, from Bitcoin to any single altcoin.

Staff views also address net capital: certain proprietary Bitcoin (BTC) and Ethereum (ETH) holdings receive a 20% capital haircut, while qualifying payment-type stablecoins receive 2%. Haircuts matter because they reduce the value recognized in the net capital calculation, and a higher haircut forces a firm to hold more qualifying capital against the same exposure. The practical question of protecting keys spans cold storage and devices such as a hardware wallet, and how self-held assets are counted shapes what brokerages can offer clients.

Two more dates frame the file. The SEC proposed separate custody rules for investment advisers and registered funds on October 1, 2026, under RIN 3235-AN46, a distinct matter covering different entities and obligations. Politically, Democrats won majorities in both chambers in the November 3 midterms and take control when the 120th Congress convenes on January 3, 2027. Wyoming Senator Cynthia Lummis kept pressing the CLARITY Act on November 5, writing that “Democrats want every retail crypto transaction to run through a registered broker or dealer,” and that the bill requires exactly that. Her post added that Democrats had voted against regulated intermediation between ordinary investors and markets.

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The Haircuts Are the Practical Hinge

Nothing in the OIRA file binds anyone yet. The proposal’s “economically significant” tag means the White House will weigh its financial impact, and once review ends the SEC would publish proposed amendments and open a public comment period before any final rule. The capital haircuts are the hinge for firms: codifying the 20% treatment for BTC and ETH, or changing it, directly alters the net capital math for any brokerage adding digital assets. A Democratic Congress can slow adoption through hearings, document requests and appropriations fights, but a Congressional Review Act resolution would land on the desk of President Donald Trump, whose veto would need two-thirds of both chambers to override. The next concrete checkpoint is the end of the OIRA review.