SEC Proposes New Crypto Custody Framework Allowing Advisers Self-Custody

Bitcoin traded near $86,800 on October 2 as the SEC proposed new rules for crypto custody. The proposal would let advisers use self-custody when qualifying custodians cannot hold specific crypto assets.

The SEC issued the proposal on October 1 under the Investment Advisers Act and Investment Company Act. The agency also proposed allowing state-chartered trust companies to provide qualifying crypto custody services.

The plan remains a proposal, so it does not immediately change existing custody requirements. However, it opens a formal 60-day public comment period after Federal Register publication.

Bitcoin Price And The SEC Custody Proposal

Bitcoin has traded above $86,000 as the cryptocurrency market enters October with stronger momentum. Barron’s reported Bitcoin at $86,885 on October 2, up 2.7% during the session.

Against that market backdrop, the SEC has focused on a specific operational problem affecting regulated crypto activity. Some advisers have faced limited custody options for certain digital assets under existing rules.

The proposed framework would give advisers another route when eligible custody services remain unavailable. However, the SEC would limit that route to defined circumstances and require additional controls.