SEC Proposes New Rules for Crypto Custody by Advisers and Funds
The US Securities and Exchange Commission (SEC) has proposed new rules to update existing custody requirements for crypto assets held by registered investment advisers and regulated funds.
The proposal aims to create a tailored framework for crypto custody, allowing crypto assets to be held in self-custody under certain circumstances and enabling state trust companies to act as custodians.
According to SEC Chair Paul Atkins, the existing rules were developed around traditional assets and have not kept pace with the growth of the crypto market.
The proposed framework would also update requirements covering financial statement audits and broker-dealer custodial services, removing regulatory barriers that can limit advisers' ability to provide crypto-related investment advice.