SEC Opens Door to Crypto Self-Custody for Investment Advisers

The Securities and Exchange Commission (SEC) has proposed a new rule that would allow investment advisers to hold cryptocurrencies on behalf of their clients, known as self-custody. The proposal also sets conditions for state trust company custody.

According to the SEC, this move aims to provide greater flexibility for investment advisers in managing client assets. However, critics argue that this could increase risks and liabilities for these firms.

The public has 60 days after Federal Register publication to comment on the proposal. The exact date of publication is not specified in the source.