SEC Eases Crypto Custody Rules for Investment Advisers

The Securities and Exchange Commission (SEC) has proposed easing rules for investment advisers and funds to hold crypto assets, potentially clearing a regulatory hurdle that has held some businesses back from offering clients digital asset investments.

The proposal would allow investment advisers to hold clients' crypto assets themselves when no eligible crypto custodian is available, with conditions. It would also permit state trust companies to serve as crypto custodians.

'The crypto asset market has grown from a niche curiosity into a multi-trillion-dollar asset class to which investors actively seek exposure,' said US Securities and Exchange Commission Chair Paul Atkins in a statement.