SEC proposes rules letting advisers and funds self-custody crypto

What happened

The Securities and Exchange Commission proposed rules on Thursday creating a tailored framework for how registered investment advisers and regulated funds may custody crypto assets, according to the agency.

Confirmed

Global impact / market context

If finalized, the framework would let registered advisers and funds hold crypto under specific SEC rules, which means clearer custody requirements and potentially more crypto exposure, as firms weigh compliance costs against investor demand for these assets.

Analyst inference

The proposal follows the Investment Advisers Act of 1940 and the Investment Company Act, which are existing laws governing adviser and fund conduct. It signals regulatory attention on crypto custody, which affects how registered firms structure holdings, operations, and compliance.

Analyst inference

What to watch

1. The SEC proposed the rules on Thursday and published the proposal pursuant to the Investment Advisers Act of 1940 and the Investment Company Act framework for crypto custody. Confirmed
2. Watch whether the SEC finalizes this tailored custody framework, since the rules are only proposed and could change before any adoption or withdrawal. Proposed
3. Track how registered advisers and funds respond, because new custody rules could shift crypto holdings, compliance costs, and where digital assets sit within regulated portfolios. Analyst inference

Evidence

• cryptopolitan.com