SEC Proposes Easing Crypto Custody Rules for Funds and Advisers
The U.S. 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 crypto assets on behalf of clients.
The initiative provides a separate system of requirements for the custody of digital assets, which could include self-custody under certain circumstances.
State trust companies would also be able to act as custodians of crypto assets belonging to clients and regulated funds.
SEC Chair Paul Atkins said the current rules have failed to keep pace with the rapid development of the digital asset market, which has grown to several trillion dollars.
The proposal is intended to create a clear regulatory framework for the custody of crypto assets and allow advisers and funds to operate in compliance with the regulator's requirements.
The SEC will accept public comments for 60 days after the document is published in the Federal Register.