SEC Proposes Tailored Crypto Custody Rules for Investment Advisers

The US Securities and Exchange Commission (SEC) has proposed new rules aimed at providing a tailored framework for the custody of digital assets for registered investment advisers and regulated funds. The proposal, which was announced on October 1, would modernize custody rules and expand investor choice by removing regulatory barriers that inhibit the adviser's ability to provide cryptocurrency-related investment advice.

The SEC aims to allow regulated funds to offer clients access to a wider range of crypto asset-related investment strategies. This move is seen as a step towards greater flexibility for investment advisers in managing digital assets on behalf of their clients.