SEC Proposes Crypto Custody Framework with Self-Custody Options
The US Securities and Exchange Commission (SEC) has proposed new regulatory guidelines for cryptocurrency custody. The framework would allow registered investment advisers and regulated funds to provide clients with access to crypto assets, potentially through self-custody in some cases.
Under the proposal, state-chartered trust companies would be granted a pathway to become crypto custodians, providing an alternative to existing custodial services. This move aims to address the regulatory uncertainty surrounding crypto custody, which has been a significant hurdle for investment advisers and funds seeking to offer clients exposure to this novel asset class.
The SEC's proposal acknowledges that the current custody rules were developed in a different era, before the emergence of Bitcoin and the multi-trillion-dollar cryptocurrency market. SEC Chairman Paul Atkins emphasized that existing rules are no longer suitable for today's financial landscape.