SEC Proposes New Crypto Custody Framework for Investment Advisers
On October 1, the U.S. Securities and Exchange Commission (SEC) proposed new rules to clarify how investment advisers and regulated funds can hold crypto assets on behalf of clients. The proposal introduces a tailored custody framework that would allow registered entities to manage digital assets through state trust companies or self-custody arrangements. SEC Chair Paul Atkins emphasized that these changes are necessary as the crypto market has grown into a multi-trillion-dollar asset class, outpacing existing regulations. The new rules aim to provide a compliant pathway for managing crypto investments where none previously existed and will remain open for public comment for 60 days before final consideration. This proposal is part of broader efforts by the SEC over recent months to establish clearer regulatory frameworks around digital assets, including Regulation Crypto Assets in August and an Innovation Exemption in September. Atkins has stated that these initiatives are being pursued independently from stalled legislative efforts like the CLARITY Act, signaling a proactive stance toward regulating crypto markets without waiting for congressional action.
Topics: cryptocurrency custody rules investment advisers SEC