According to Decrypt, the U.S. Securities and Exchange Commission has proposed new rules intended to clarify how registered investment advisers and investment funds may hold cryptocurrency assets. The proposal would allow these entities to use state trust companies as custodians for crypto holdings under appropriate regulatory oversight. It also permits self‑custody of digital assets when certain conditions are met. The aim is to replace the existing ambiguity surrounding custody arrangements with a clear, compliance‑focused path for advisers and funds.
The rules seek to provide guidance on eligibility criteria, security requirements, and reporting obligations for both custodial providers and entities choosing self‑custody. By offering a defined framework, the SEC hopes to reduce uncertainty for market participants while ensuring adequate protection of investors’ assets.
