News
Public · Published
SEC Chair Pushes Crypto Self-Custody in New Regulatory Framework
SEC Chair Paul Atkins has directed staff to create a proposal that would let investment advisers hold crypto assets themselves under certain conditions. The plan would also allow state trust companies to act as custodians for advisers and regulated funds.
Published:
Updated:
What happened
SEC Chair Paul Atkins has directed staff to create a proposal that would let investment advisers hold crypto assets themselves under certain conditions. The plan would also allow state trust companies to act as custodians for advisers and regulated funds.
Confirmed
Global impact / market context
If approved, advisers could avoid using third-party custodians, reducing costs and control issues. This may increase their willingness to hold crypto, potentially boosting demand for digital assets and affecting related businesses.
Analyst inference
Currently, advisers face strict custody rules, often requiring external custodians. This proposal could shift regulatory boundaries, making crypto more accessible to mainstream finance. That might attract new investors and change how funds manage digital assets.
Analyst inference
What to watch
- Whether the SEC formally publishes the proposal for public comment, which would begin a rulemaking process with specific conditions for self-custody. Confirmed
- Watch for details on the 'certain conditions' advisers must meet, such as security standards or reporting requirements, which will determine practical adoption. Proposed
- Assess how state trust companies respond to the new custodial role, as their participation could expand services and influence state-level crypto regulations. Analyst inference