SEC Crypto Custody Rules Clarify Institutional Digital Asset Holders

The U.S. Securities and Exchange Commission has moved to fix a problem that has quietly frustrated Wall Street’s crypto ambitions for years: nobody could agree on who is legally allowed to hold digital assets on behalf of clients. On Thursday, the agency proposed new SEC crypto custody rules designed to let investment advisers and regulated funds hold cryptocurrencies for clients without guessing at compliance, a shift that could reshape how institutions approach digital asset investing.

Key takeaways

• The SEC proposed rules on Thursday, October 1, 2026, making it easier for investment advisers, investment companies and business development companies to custody crypto assets.
• The proposal would permit self-custody under certain circumstances and allow state trust companies to serve as crypto custodians.
• SEC Chairman Paul Atkins said the move replaces “the grey of uncertainty created by custody rules crafted for a bygone era.”
• The push follows the stalling of the Clarity Act crypto market structure bill in the Senate in September.
• The public comment period runs for 60 days once the rule is published in the Federal Register.

SEC Unveils New Crypto Custody Framework for Advisers and Funds