SEC maps out crypto custody in new proposal that furthers its digital assets agenda
Summary
The SEC proposed a 760-page rule to clarify how investment advisers and regulated funds may custody crypto assets, including eligible custodians, recordkeeping, disclosures and audits. Advisers could hold assets themselves only if no qualified custodian is available, they meet expertise requirements, and they reassess custodian availability quarterly. The proposal would also permit state-chartered trusts to serve as custodians and is open for public comment for 60 days. The move advances SEC Chairman Paul Atkins’ crypto agenda, following recent proposals on tokenized securities and digital-asset fundraising. Commissioner Hester Peirce is leaving, while a change to quorum rules allows the two remaining commissioners to act.
