A Framework Where None Existed Before The @SECGov on October 1, 2026 proposed new rules designed to give registered investment advisers and regulated funds a formal route for safeguarding cli
The @SECGov on October 1, 2026 proposed new rules designed to give registered investment advisers and regulated funds a formal route for safeguarding client crypto assets. SEC Chairman Paul Atkins said the proposal would provide "a clear regulatory framework for the custody of crypto assets, giving investment advisers and funds a compliant pathway where none existed before."
The SEC said the proposed framework is intended to address custody arrangements that do not fit cleanly within rules developed before crypto assets existed. Chairman @SECPaulSAtkins has been open about the fact that current custody rules were built around traditional assets and need updating to reflect how digital assets are actually held and transferred.
The Commission's proposal would modernize custody rules and expand investor choice by removing regulatory barriers that inhibit the adviser's ability to provide crypto-related investment advice. It also covers regulated funds, defined as registered investment companies and business development companies.
The SEC proposed a new framework for how registered investment advisers and regulated funds can custody crypto assets, including under certain conditions allowing self-custody and the use of state trust companies.The proposal would amend custody requirements under the Investment Advisers Act of 1940 and Investment Company Act of 1940 to account for the way digital assets are held and transferred, and would also update requirements involving financial statement audits and broker-dealer custody services for regulated funds.
The Advisers Act amendments would apply only to crypto assets that are funds or securities, and the new Investment Company Act rules would apply only to crypto assets that are securities or similar investments. A 60-day public comment period will begin once the proposal appears in the Federal Register.
"More regulatory proposals are on the horizon, and I look forward to continuing to help President Trump cement the United States as the crypto capital of the world," SEC Chair Paul Atkins said.
Sources:SEC Official Press Release: Proposal Would Address How Investment Advisers and Funds Can Custody Crypto AssetsThe Block: SEC Proposes Framework Allowing Investment Advisers, Funds to Self-Custody CryptoSecurities.io: SEC Proposes Crypto Asset Custody Rules for Advisers and Funds
