SEC proposes crypto custody framework for advisers and funds
The proposal would allow self-custody in some circumstances and state trust companies to act as custodians. Public comments would run for 60 days after Federal Register publication.
The US Securities and Exchange Commission has proposed rules and amendments setting out how registered investment advisers and regulated funds could custody crypto assets. The proposal covers registered investment companies and business development companies.
Under the proposed framework, crypto assets could be held in self-custody in certain circumstances, and state trust companies could serve as custodians. The SEC has not detailed those conditions in the material released.
The proposal, under the Investment Advisers Act of 1940 and the Investment Company Act of 1940, would also update requirements including financial statement audits for registered investment advisers and broker-dealer custodial services for regulated funds.
SEC Chairman Paul S. Atkins said the framework was intended to address uncertainty and provide a compliant pathway for custody. The commission said the changes could expand options for advisers and funds, including access to crypto-related investment strategies.
The rules remain a proposal, not requirements in force. The SEC’s public comment period will last 60 days after publication of the proposing release in the Federal Register; the publication date has not been specified.
