SEC Proposes Regulatory Framework for Crypto Custody

The Securities and Exchange Commission (SEC) has proposed a framework to help investment advisers and regulated funds safely store cryptocurrency assets.

The proposal, announced by SEC Chair Paul Atkins on October 1, addresses custody under the Investment Advisers Act of 1940 and the Investment Company Act of 1940.

Custody services for newly developed crypto assets can take months to become available, according to Atkins. The proposed framework aims to provide a regulatory environment for advisers and funds to store these assets within.