SEC Eases Rules for Investment Advisers to Hold Clients' Crypto Assets

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

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

SEC Chair Paul Atkins said in a statement that the rules have not kept pace with the growth of the crypto market, which has grown from a 'niche curiosity' into a multi-trillion-dollar asset class.