SEC Proposes Crypto Custody Framework for Investment Advisers and Funds

The U.S. Securities and Exchange Commission on October 1, 2026, proposed rules and amendments addressing custody of crypto assets by registered investment advisers and regulated funds.

The SEC’s proposal would create a tailored crypto-asset custody framework under federal securities laws. It addresses circumstances in which crypto assets could be held through self-custody and expands the types of entities that could serve as custodians.

The proposal remains subject to public comment and has not taken effect. Comments will be accepted for 60 days after the proposing release is published in the Federal Register.

What the SEC proposal covers

The proposed rules and amendments are focused on custody arrangements for crypto assets held by registered investment advisers and regulated funds. The SEC said the framework would also modernize related custody, audit, and broker-dealer requirements.

A central feature is the treatment of self-custody in certain circumstances. The proposal would also permit state trust companies to act as custodians, potentially broadening the set of institutions available for qualifying custody arrangements.

• A tailored custody framework for crypto assets held by registered investment advisers and regulated funds.
• Self-custody provisions that would apply only in certain circumstances.
• Permission for state trust companies to serve as custodians.
• Related updates involving custody, audit, and broker-dealer requirements.

Proposal enters the comment process

The SEC has opened the proposal to public feedback. The comment period is scheduled to remain open for 60 days following publication of the proposing release in the Federal Register.

Because this is a proposal, the described framework is not yet a final requirement. The comment process gives market participants and other interested parties an opportunity to address the proposed approach before any final SEC action.

Part of an active regulatory agenda

The custody proposal adds to recent U.S. regulatory activity involving digital-asset market structure and compliance questions. BTCNews.space previously covered the SEC’s conditional exemption concerning tokenized NMS stocks and the Federal Reserve’s request for comment on a GENIUS Act stablecoin framework.

The present SEC action is specifically directed at the custody of crypto assets by advisers and funds. Its practical effect will depend on the final text, if the Commission adopts rules after the comment period.

Continue reading: SEC’s conditional exemption concerning tokenized NMS stocks on BTCNews.

Continue reading: Federal Reserve’s request for comment on a GENIUS Act stablecoin framework on BTCNews.

Sources

• U.S. Securities and Exchange Commission: SEC Proposal Would Address How Investment Advisers and Funds Can Custody Crypto Assets Under the Federal Securities Laws

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