SEC Proposes New Crypto Custody Rules with Limited Self-Custody Option

The US Securities and Exchange Commission (SEC) has proposed new rules for crypto custody, allowing registered investment advisers to self-custody certain client or fund assets under limited circumstances.

The proposal aims to address a recurring compliance problem involving assets without an available permitted third-party custodian. Existing custody requirements were deemed inadequate by the agency in addressing digital assets.

The SEC also proposed allowing state-chartered trust companies to serve as permitted crypto custodians under specified conditions. Commissioner Mark Uyeda said these companies already play an important role in the crypto custody sector.