SEC Proposes Rules to Simplify Crypto Custody for Investment Advisers and Funds
The U.S. Securities and Exchange Commission (SEC) has proposed new rules aimed at simplifying the process by which investment advisers and regulated funds can hold cryptocurrencies on behalf of clients. The proposal, announced recently, would establish a tailored framework allowing registered entities to custody crypto assets through self-custody in certain cases or via state trust companies as custodians. The changes are intended to modernize outdated regulations that have hindered the ability of advisers and funds from offering crypto-related investments. SEC Chairman Paul Atkins emphasized the need for updated rules, noting that existing frameworks had not kept pace with digital assets' rapid growth into a multi-trillion-dollar market. The proposal is part of broader regulatory efforts following stalled legislation like the Clarity Act. The proposed framework will be open to public comment after publication in the Federal Register and represents another step toward establishing clearer crypto regulations under SEC authority.
Topics: cryptocurrency custody investment advisers regulated funds SEC