SEC Proposes New Crypto Custody Rules for Advisers and Funds

The US Securities and Exchange Commission (SEC) has proposed new custody rules for crypto assets held by registered investment advisers and regulated funds. The proposal, titled 'Adviser and Regulated Fund Custody Rules; Crypto Custody Rules', aims to modernize existing custody standards and improve transparency in how firms handle reporting and recordkeeping.

The SEC unveiled the proposal on October 1, 2026, after withdrawing a similar safeguarding proposal in June 2025. The new framework is meant to help firms meet their ongoing obligations under the Investment Advisers Act and the Investment Company Act.

The initiative comes from the SEC's Crypto Task Force, which has been driving the agency's effort to bring clearer regulation to digital assets. The full document is posted on SEC.gov as a PDF of approximately 3.54 MB.