Crypto
Home›Crypto›Regulation›SEC proposes custody rules for advisers and funds hold…
SEC proposes custody rules for advisers and funds holding crypto
The SEC would allow certain self-custody setups and expand the role of state trust companies as custodians, addressing uncertainty over what counts as a qualified custodian.
The U.S. Securities and Exchange Commission proposed a framework for how registered investment advisers and regulated funds can custody crypto assets, aiming to replace years of regulatory ambiguity with a clearer compliance path, Decrypt reported.
Under the existing Investment Advisers Act of 1940 and Investment Company Act of 1940, advisers are required to keep client assets with qualified custodians that meet strict safekeeping standards, but it has been unclear which crypto arrangements satisfy that bar.
The proposal would permit crypto assets to be held in self-custody under certain conditions, allow state trust companies to act as custodians for client and fund crypto, and update related rules around financial-statement audits for advisers and broker-dealer custodial services for funds.
The SEC said the goal is to widen investor access to crypto strategies by removing custody-related barriers that have kept many advisers from offering digital asset approaches.