SEC Proposes Rules for Crypto Custody

The U.S. Securities and Exchange Commission (SEC) has proposed new rules to update how investment advisers and regulated funds hold assets, with a big focus on cryptocurrencies.

The proposal would allow advisers and funds acting through their advisers to hold client crypto themselves, but only if no permitted custodian is available.

Regulators are pushing ahead with rulemaking for the digital asset space despite lawmakers blocking the Clarity Act last month.

SEC Chairman Paul Atkins said in a statement that since the advent of Bitcoin in 2008, the crypto asset market has grown from a niche curiosity into a multi-trillion-dollar asset class.