The US Securities and Exchange Commission has proposed new rules and amendments designed to establish a tailored regulatory framework for crypto asset custody by registered investment advisers and regulated funds.
Proposed Framework and Regulatory Objectives
On 1 October 2026, the Securities and Exchange Commission introduced proposed rules and amendments aimed at establishing a dedicated framework for crypto asset custody.
The proposed regulatory structure applies to registered investment advisers as well as regulated funds, encompassing registered investment companies and business development companies.
By modernising existing custody requirements, the measures seek to remove regulatory barriers that currently restrict an adviser's ability to provide investment advice on crypto assets.
The proposed changes would also enable regulated funds to offer client access to a broader range of crypto asset investment strategies.
Statutory Updates and Custodial Requirements
The proposed updates fall under the Investment Advisers Act of 1940 and the Investment Company Act of 1940, intended to align rules with current industry practices.
Specific requirements addressed in the proposal include financial statement audits for registered investment advisers and broker-dealer custodial services for regulated funds.
Under designated circumstances, the framework permits crypto assets to be held in self-custody.
Additionally, the rules would allow the use of state trust companies to serve as custodians for client and regulated fund crypto assets.
Market Context and Public Comment Period
In a statement accompanying the announcement, SEC Chairman Paul S. Atkins noted that since the creation of Bitcoin in 2008, the crypto asset market has evolved from a niche curiosity into a multi-trillion-dollar asset class.
Chairman Atkins stated that the new proposal provides a compliant path for advisers and funds, seeking to replace regulatory uncertainty associated with rules designed for earlier eras.
The public comment period regarding the proposed release will remain open for 60 days following its publication in the Federal Register.
Domande frequenti
Which entities are covered under the SEC crypto custody proposal?
The proposal applies to registered investment advisers and regulated funds, including registered investment companies and business development companies.
Does the SEC proposal allow self-custody or state trust companies?
Yes, the proposed framework permits crypto assets to be held in self-custody under specific circumstances and allows state trust companies to act as custodians.
How long is the public comment period for the SEC proposal?
The public comment period will remain open for 60 days following publication of the proposing release in the Federal Register.
