SEC Proposes Crypto Custody Rules for Advisers and Funds

The Securities and Exchange Commission (SEC) has proposed new rules for crypto custody by registered investment advisers and regulated funds. The proposed framework would allow certain self-custody and the use of state trust companies as custodians.

The SEC aims to modernize custody rules for crypto within federal securities laws, which could unlock adviser and fund participation in crypto markets. Public comment is open for 60 days after Federal Register publication, giving stakeholders a chance to weigh in on the proposed rules.

Some analysts see this as an opportunity for institutional access and product breadth to grow, potentially impacting crypto demand. However, it's essential to note that this is an early-stage regulatory move, and final adoption details, compliance timelines, and industry pushback or support will shape the outcome.