SEC Proposes Crypto Custody Rules for Funds, Opens Door to Self-Custody

What happened

The SEC published a 760-page crypto custody proposal on October 1 covering registered advisers and funds, and it opens the door to self-custody, which means advisers holding client crypto assets themselves.

Proposed

Global impact / market context

If finalised, the proposal could change how registered advisers and funds hold client crypto, affecting their costs, cash available, and compliance duties. Self-custody would shift operational risk and insurance needs onto those firms rather than third-party custodians.

Analyst inference

The proposal is not yet final and awaits approval, so current custody arrangements remain in place. Investor positioning in crypto funds may stay cautious until the rules are settled, because the final outcome could alter which products advisers can offer.

Analyst inference

What to watch

1. The SEC's proposal awaits public comment and possible revision before any final vote, so the self-custody option could change or be removed entirely. Proposed
2. Registered advisers and funds may need new systems, records, and insurance if they choose self-custody, which could raise costs and reduce cash available. Analyst inference
3. Investors could watch whether final rules make crypto funds easier or harder to buy through advisers, since that affects demand and product availability. Analyst inference

Evidence

• en.spaziocrypto.com