News
Public · Published
SEC Proposes New Crypto Custody Framework for Advisers and Funds
The SEC proposed a new crypto custody framework that would let advisers and funds use state trust companies, and in limited cases self-custody, to hold crypto. The proposal is not yet final and awaits approval.
Published:
Updated:
What happened
The SEC proposed a new crypto custody framework that would let advisers and funds use state trust companies, and in limited cases self-custody, to hold crypto. The proposal is not yet final and awaits approval.
Proposed
Global impact / market context
If approved, this proposal would widen who can safeguard crypto for advisers and funds, potentially lowering reliance on a small set of custodians and changing how these firms structure client asset protection and custody costs.
Analyst inference
Crypto custody rules shape how much institutional money can safely enter the asset class, because advisers and funds need clear, approved ways to store client coins before allocating capital at scale.
Analyst inference
What to watch
- The SEC proposal would allow state trust companies to hold crypto for advisers and funds, expanding the types of firms eligible to provide custody services. Confirmed
- The proposal would permit self-custody in limited cases, so watch how regulators define those limits and which advisers or funds could qualify. Proposed
- Watch whether final approval changes custody options, because that could affect capital spending, compliance costs, and how much institutional money enters crypto. Analyst inference