SEC Proposes Easier Crypto Custody Rules for Investment Advisers

The US Securities and Exchange Commission (SEC) has proposed new rules to make it easier for registered investment advisers, investment companies, and business development companies to custody cryptocurrency assets on behalf of clients.

The proposal, which aims to update existing asset custody requirements, would allow for self-custody of crypto assets under certain circumstances, as well as permit state trust companies to act as custodians of crypto assets belonging to clients and regulated funds.

SEC Chair Paul Atkins stated that the current rules have failed to keep pace with the rapid development of the digital asset market, which has grown to several trillion dollars.