Banking Groups Seek Extension on Crypto Custody Rules
Six associations, including the American Bankers Association, asked the SEC to extend its public comment period on proposed crypto custody requirements.
Updated on Nov. 5, 2026 in Financial Services
The American Bankers Association and five other associations urged the Securities and Exchange Commission to extend the comment deadline on proposed rules modernizing custody requirements and creating a framework for crypto asset custody. The current deadline is December 7.
Why it matters
The proposal seeks public feedback on more than 300 aspects of the rules, and the groups say its technical complexity requires more time for thorough review. Market participants are also reviewing several overlapping SEC rulemaking proposals with comment periods ending around the same time.
The associations asked for 45 additional calendar days beyond the December 7 deadline to review more than 300 aspects of the proposed custody rules. Whether the SEC will grant the extension has not been announced.
The players
American Bankers Association
The American Bankers Association is a trade group representing the banking industry in the United States, advocating on regulatory and policy matters affecting banks.
Securities and Exchange Commission
The Securities and Exchange Commission is the federal agency responsible for regulating securities markets and enforcing federal securities laws in the United States.
The details
The associations submitted a letter to the SEC citing the highly technical nature of the proposal, which would modernize and clarify several custody requirements and establish a dedicated framework for crypto asset custody. The letter also points to overlapping SEC proposals with comment periods ending at about the same time.
Timeline
December 7, 2026: Current deadline for public comments on the SEC crypto custody proposal.
November 5, 2026: Associations' letter urging an extension of the comment deadline was published.
Market Landscape
The proposal builds on the SEC's existing custody requirements for registered investment advisers by extending them to crypto assets. The push for more review time reflects how the agency's overlapping rulemakings are reshaping how banks and advisers prepare responses.
If the comment period is extended, stakeholders gain roughly 45 more days to submit feedback on the custody framework. If not, the December 7 deadline stands for comments on more than 300 aspects of the rules.
The takeaway
Regulatory comment periods are a key window for affected firms to shape final rules, and overlapping proposals can compress that window. Firms navigating crypto custody should track both the December 7 deadline and any extension decision.
What happens next
The SEC will decide whether to extend the December 7 comment deadline, which remains the current due date for public feedback.
Further reading
Explore more on Financial Services coverage of federal regulatory proposals.
Source note: This article includes information reported by ABA Banking Journal.
