SEC Proposes Crypto Custody Rules for Investment Advisers and Funds

The US Securities and Exchange Commission (SEC) has proposed a new regulatory framework for cryptocurrency custody by investment advisers and funds. This move is aimed at providing more flexibility to these entities in managing their digital assets.

Under the proposal, investment advisers and funds would be allowed to directly hold cryptocurrencies if they meet certain requirements. This self-custody provision is expected to bring relief to industry players who have been grappling with custody issues for a long time.

The plan also includes a measure that would allow state-chartered trust companies to provide services as cryptocurrency custodians. This provision is designed to increase competition and choice in the custody market, which could lead to better services and lower costs for investors.