SEC Proposes New Rules for Crypto Asset Custody

The U.S. Securities and Exchange Commission (SEC) has proposed new rules for the custody of crypto assets by investment advisers and funds.

Under certain conditions, they will be able to hold client funds themselves or entrust them to state-licensed trust organizations.

The changes pertain to two 1940 laws: the Investment Advisers Act and the Investment Company Act. The former regulates advisers, while the latter governs registered investment companies and business development structures, which the regulator refers to as regulated funds.

SEC Chairman Paul Atkins stated that the regulations have not kept pace with industry developments, citing the emergence of Bitcoin in 2008 as a significant milestone.