SEC Proposes Modernized Crypto Custody Rules for Investment Advisers and Funds

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The U.S. Securities and Exchange Commission has proposed a new regulatory framework for cryptocurrency custody by investment advisers and funds. The proposal would allow self-custody under certain conditions and permit state-chartered trust companies to serve as custodians.

Cointelegraph reported on Oct. 1 that the SEC had proposed revisions to custody rules governing how investment advisers and funds hold digital assets.

Under the proposal, investment advisers and funds would be allowed to directly hold cryptocurrencies if they meet certain requirements.

The plan also includes a provision that would allow state-chartered trust companies to provide services as cryptocurrency custodians.