SEC proposes framework allowing investment advisers, funds to self-custody crypto

What happened

The SEC proposed a crypto framework for investment advisers and funds. It would allow self-custody in some cases and permit state trust companies to act as custodians.

Confirmed

Global impact / market context

If finalized, investment advisers and funds could hold crypto directly instead of through an outside custodian, which means they keep control of the assets. More custodians could also mean lower costs and more crypto products.

Analyst inference

Currently advisers and funds face strict custody rules that push them toward regulated third parties. This proposal signals a looser approach, which could draw more professional money into crypto and change how custody, a safekeeping service, is priced.

Analyst inference

What to watch

1. The SEC issued this crypto custody framework as a proposal, so it is not a final rule and could change before any adoption. Confirmed
2. Watch whether the SEC finalizes the framework, since only then would self-custody and state trust company custody become usable options for advisers and funds. Proposed
3. Track how fund service providers and custody banks respond, because their willingness to adopt the framework would shape actual crypto access for investors. Analyst inference

Evidence

• theblock.co