SEC Proposes Crypto Self-Custody Rules for Investment Advisers
SEC Chair Paul Atkins has proposed rules for crypto self-custody by investment advisers. He asked staff to draft a proposal allowing advisers to custody crypto assets under certain conditions. State trust companies could also qualify as custodians for these assets.
The plan is part of the SEC's broader crypto framework, which includes three pillars: Regulation Crypto Assets, transfer-agent rules, and the self-custody proposal. The second pillar, Regulation Crypto Assets, was proposed on August 18 and would create rules for certain crypto investment contract offerings with exemptions for smaller offerings.
Atkins also urged Congress to pass the CLARITY Act, which could help answer questions about when a crypto investment contract legally ends. However, the bill remains stalled after failing to advance in the Senate due to disputes over ethics provisions and stablecoin rules.