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SEC proposes custody framework for investment advisers holding crypto
The SEC’s proposal, issued Oct. 1, would let advisers and regulated funds hold crypto under an SEC-written custody framework, with public comments due Oct. 20.
The US Securities and Exchange Commission has proposed a custody framework that would allow investment advisers and regulated funds to hold crypto assets under rules drafted for them, CryptoSlate reports. The SEC issued the proposal on Oct. 1 as part of a wider set of regulatory actions affecting multiple stages of a crypto asset’s lifecycle.
The custody proposal is described as the latest of nine SEC and related agency actions launched since Aug. 18, with the series spanning from fundraising to safekeeping. CryptoSlate also notes that the asset’s legal status, shaped by earlier approvals and exemptions, determines what crypto businesses can use today.
Alongside the custody work, CryptoSlate highlights that the SEC’s broader Regulation Crypto Assets proposal, issued Aug. 18, would create an offering regime for certain investment contracts involving crypto assets. That proposal includes exemptions for fundraising up to $5 million over four years and $75 million in a 12-month period, along with a conditional safe harbor from the investment-contract definition.
Comments on the SEC’s Regulation Crypto Assets proposal are due Oct. 20. CryptoSlate adds that two related actions came before the Senate rejected cloture on the CLARITY Act on Sept. 15, and additional actions followed starting Sept. 17.