SEC Eases Crypto Custody Rules for Investment Advisers
The US Securities and Exchange Commission (SEC) has proposed changes to make it easier for investment advisers and certain funds to hold clients' cryptocurrency assets when no qualified custodian is available.
The proposal, published Thursday, aims to remove a practical bottleneck that has limited how broadly advisers can offer digital asset exposure. The crypto market has grown into a multi-trillion-dollar asset class, but existing rules have not kept pace with how investors seek access to it, according to SEC Chair Paul Atkins in a statement.
The proposal targets specific custody requirements under federal investment-adviser and investment-company frameworks, where firms can face challenges securing 'eligible' custody arrangements for particular assets. Self-custody would come with conditions, including quarterly reassessment, private-key controls, cybersecurity requirements, and transfer approvals by at least two authorized individuals.