SEC Proposes Crypto Custody Framework for Investment Advisers and Funds

What happened

The U.S. Securities and Exchange Commission proposed new rules and amendments on October 1, 2026, that would let registered investment advisers and regulated funds self-custody certain crypto assets under specified conditions and permit state trust companies to serve as crypto custodians, subject to approval and not yet final.

Proposed

Global impact / market context

If adopted, this proposal could change who may safely hold crypto for professional investors, widening custody options beyond today's limited providers. More choices could lower costs, reduce delays, and shift how fund managers store digital assets.

Analyst inference

Custody is a key hurdle for regulated investors entering crypto, since rules decide which firms can hold client assets. This proposal signals a possible easing of access, but it is conditional, so any real effect on capital spending and positioning depends on final approval.

Analyst inference

What to watch

1. Watch whether the SEC finalizes these proposed rules and amendments, or changes them before adoption, because the framework is not yet in force. Confirmed
2. Track whether state trust companies and registered entities qualify as eligible crypto custodians, which would expand custody options for advisers and funds. Proposed
3. Observe how asset managers respond to self-custody conditions, since their choices could affect demand for crypto assets and service providers. Analyst inference

Evidence

• cryptomegaphone.com