SEC Proposes Rule Changes for Crypto Custody by Investment Advisers

The U.S. Securities and Exchange Commission (SEC) has proposed rule changes that could make it easier for investment advisers to provide clients with exposure to crypto assets.

The initiative, published on Thursday, addresses a custody problem that has slowed adoption by firms that want to allocate specific tokens but cannot always find a suitable qualified custodian.

According to the SEC, the proposal would allow advisers to hold clients' crypto assets themselves in cases where no eligible custodian is available, subject to strict conditions. This includes robust key-management and cybersecurity safeguards, along with approval controls for transfers.