SEC Proposes New Rule for Funds to Hold Their Own Crypto Assets

The U.S. Securities and Exchange Commission (SEC) has proposed a new rule that would allow investment advisers and regulated funds to custody crypto assets themselves under certain conditions.

The proposal, announced on October 1, aims to clarify how investment firms can hold clients' crypto assets and which companies can provide custody services, according to CoinDesk.

SEC Chair Paul Atkins said the current rules were designed for traditional assets and that investment advisers and funds need a clear framework suited to crypto. 'The proposal will resolve uncertainty created by outdated custody rules,' he emphasized.

The proposal allows self-custody under certain conditions, meaning crypto assets can be held without placing them with an external custodian. It also provides for the use of trust companies authorized to operate by states as crypto custodians.