SEC Signals More Crypto Proposals After Custody Rule Overhaul

The Securities and Exchange Commission (SEC) is sending a clear message to the crypto industry: it's not done yet.

Following the proposal of a new framework for crypto custody, SEC Chair Paul S. Atkins indicated that more regulatory proposals are on the horizon.

The proposed overhaul of how investment advisers and funds hold digital assets aims to fix outdated rules that don't apply neatly to blockchain-based assets.

Key changes include allowing self-custody in limited circumstances and permitting state trust companies to serve as custodians for crypto, broadening the pool of eligible entities.

The comment period is now open for 60 days after publication in the Federal Register, which could lead to further revisions or even expansion of these provisions.