SEC Proposes New Crypto Custody Rules for Investment Advisers

crypto custody rules — The U.S. Securities and Exchange Commission has proposed new rules to govern how investment advisers and funds can hold cryptocurrency assets for their clients.

The proposal, published on October 1, 2026, aims to establish a clear regulatory framework for crypto custody. It outlines the conditions under which qualified custodians, including certain banks and trust companies, can safeguard digital assets.

Notably, the rule also seeks to allow investment advisers to self-custody client crypto assets in limited circumstances, a provision that could expand operational flexibility for some firms. The move is part of the SEC’s broader agenda to regulate digital assets.

The proposal is now open for public comment. It marks a significant step in formalizing the rules for institutional participation in the crypto market, addressing a long-standing area of regulatory uncertainty for asset managers.