SEC Proposes New Crypto Custody Rules for Advisers and Funds

The US Securities and Exchange Commission (SEC) has proposed new rules for how registered investment advisers and regulated funds hold cryptocurrency assets. The proposal, announced on October 1, aims to create a tailored framework for digital-asset custody and modernize existing requirements.

According to the SEC, the proposal would give advisers and regulated funds greater flexibility in how crypto assets are held. SEC Chair Paul Atkins described the proposal as an effort to establish a clearer compliant pathway for investment advisers and funds managing crypto assets under federal securities law.

The proposal remains in its current state, with no final rules yet established. This distinction is crucial, as regulatory developments can quickly turn into definitive-sounding headlines.

For businesses offering institutional products, custody infrastructure, or investment services, clearer frameworks may raise expectations around how those services are explained publicly.