SEC proposes crypto custody rules for investment advisers and funds

What would change

The Securities and Exchange Commission proposed new rules and amendments for cryptoasset custody by registered investment advisers, registered investment companies and business development companies. Its announcement describes changes to financial-statement audit requirements and broker-dealer custody services, alongside a route for state trust companies to act as custodians.

The proposal would also allow self-custody in specified circumstances. Those conditions matter: the announcement does not grant every adviser or fund an unrestricted right to hold every cryptoasset through any wallet arrangement.

The regulator's stated rationale

In a separate statement, SEC Chair Paul Atkins argued that existing custody requirements were designed before modern crypto markets and can constrain access to assets for which established custodial support is unavailable. His statement presents the proposal as a way to address that mismatch while retaining investor safeguards.

That is the regulator's policy case, not evidence that the changes have already improved custody outcomes. Readers should distinguish a proposed framework from an adopted rule and from an individual custodian's service terms.

What remains open

The SEC said comments would remain open for 60 days after publication of the proposing release in the Federal Register. This article does not infer a calendar deadline from the press-release date. Final requirements, implementation timing and any changes following consultation remain to be determined.