SEC Proposes Rules to Clear Up How Advisers and Funds Can Hold Crypto
The SEC proposed a new custody framework for crypto held by registered investment advisers and regulated funds, aiming to replace long-standing uncertainty over whether digital assets can meet existing “qualified custodian” rules. The plan would create clearer compliance paths for professional managers and could make it easier for firms to offer crypto strategies. Key changes include allowing self-custody in limited cases, permitting state trust companies to serve as custodians for crypto, and updating audit and broker-dealer custody requirements. The agency says the goal is to expand investor access to crypto while modernizing rules that were built for a pre-crypto era. The proposal is part of a broader SEC push on digital assets, including tokenized securities, crypto fundraising, and other guidance. It is not final and will go through a 60-day public comment period before any adoption vote.
