SEC Proposes Crypto Custody Rules to Ease Regulatory Bottleneck
The U.S. Securities and Exchange Commission (SEC) has proposed new rules to govern how registered investment advisers and regulated funds hold cryptocurrency assets, aiming to clarify which arrangements meet the 'qualified custodian' standard.
The proposal would allow state trust companies to act as custodians for crypto assets in certain circumstances and permit self-custody under specific conditions, including quarterly reassessment of the position. This move aims to address a bottleneck in custodial services for new crypto assets, which can take months to become available after launch.
The SEC's Chairman Paul Atkins framed the proposal as part of a broader regulatory approach to cryptocurrency, citing earlier staff actions on tokenization and tokenized securities. The agency is seeking public comment on the proposal, which will open once it is published in the Federal Register.