The SEC proposed new rules October 1, 2026 establishing a framework for how registered investment advisers and regulated funds hold crypto assets in custody.
Changes include limited self-custody arrangements and eligibility of state trust companies as custodians. Proposal updates requirements under the Investment Advisers Act of 1940 and Investment Company Act of 1940.
SEC Chairman Paul Atkins: existing rules failed to keep pace with digital asset growth. “Today’s 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.”
Proposal aims to clear path for advisers blocked from crypto services and expand crypto strategies for regulated funds. 60-day comment period after Federal Register publication.