SEC Proposes New Crypto Custody Rules for Investment Advisers

The Securities and Exchange Commission (SEC) has proposed new rules for crypto custody, aiming to modernize existing frameworks that have not kept pace with technological advancements in digital assets.

The proposal allows self-custody in certain situations and enables state trust companies to serve as custodians. This shift is expected to create a more compliant environment for investment advisers.

This development comes amid ongoing regulatory uncertainties stemming from the stalled CLARITY Act in Congress, which has left the industry navigating uncharted territory.