SEC Proposes Tailored Crypto-Custody Framework for Advisers
The US Securities and Exchange Commission (SEC) has proposed new rules to provide a tailored framework for the custody of digital assets by registered investment advisers and regulated funds. The proposal aims to modernize custody rules and expand investor choice by removing regulatory barriers that inhibit the adviser's ability to provide cryptocurrency-related investment advice.
The new rules would allow regulated funds, such as investment companies and business development companies, to offer clients access to a wider range of crypto asset-related investment strategies. This move is seen as an attempt to modernize custody rules and keep pace with the growing demand for digital assets in the financial sector.
The proposal comes after years of regulatory uncertainty surrounding the custody of digital assets. The SEC's move is seen as a positive step towards providing clarity and certainty for investors and advisers alike.