SEC proposes framework for crypto custody
- The SEC proposed rules covering crypto custody for investment advisers and regulated funds.
- The proposal would allow self-custody in certain cases and state trust companies as custodians.
- A 60-day public comment period will follow publication in the Federal Register.
The Securities and Exchange Commission proposed rules for crypto custody affecting investment advisers and regulated funds on October 1.
The proposal would update custody rules under the Investment Advisers Act and Investment Company Act.
“Since the advent of Bitcoin in 2008, the crypto asset market has grown from a niche curiosity into a multi-trillion-dollar asset class to which investors actively seek exposure,” SEC Chairman Paul S. Atkins said in a statement.
The framework aims to remove regulatory barriers that can restrict advisers from offering crypto-related investment advice.
The proposal would also permit crypto assets to use self-custody under certain conditions.
It would also allow state trust companies to serve as custodians for client and regulated fund crypto assets.
The SEC said the proposal would expand access to crypto-related investment strategies through regulated funds.
The SEC will accept public comments for 60 days after publication in the Federal Register.
