SEC Introduces New Crypto Custody Rules for Advisers and Funds

The U.S. Securities and Exchange Commission (SEC) has introduced a new regulatory framework for registered investment advisers and regulated funds regarding the custody of crypto assets. The proposed rules aim to establish clear guidelines on how these entities can hold digital assets securely.

The proposal allows for limited self-custody of crypto assets in situations where an appropriate custodian is unavailable. This provision recognizes the unique challenges of the crypto market and provides flexibility for investors and funds.

In addition, the rules expand custody options to include state trust companies, offering more choices for secure asset storage. This move is expected to enhance the regulatory environment for crypto investments, providing greater clarity and security for market participants.