SEC Proposes Easing Crypto Custody Rules for Investment Advisers and Funds

Key Facts

1The U.S. SEC proposed rules making it easier for investment advisers and regulated funds to hold crypto assets.

2The proposal would allow self-custody in some cases and permit state trust companies to serve as qualified custodians.

The U.S. Securities and Exchange Commission (SEC) proposed new rules to make it easier for investment advisers and regulated funds to hold crypto assets. Reuters reported that the proposal aims to modernize existing custody frameworks to accommodate digital assets more effectively. The new measures would allow for self-custody in specific instances and permit state trust companies to serve as qualified custodians for these assets.

This regulatory shift addresses previous restrictions that limited institutional participation in the cryptocurrency market. By streamlining these rules, the SEC aims to lower barriers for regulated funds, potentially driving broader institutional adoption of digital assets. The move represents a transition toward a more integrated regulatory environment compared to earlier, more restrictive stances regarding crypto custody.