According to The Block, the U.S. Securities and Exchange Commission has proposed a regulatory framework that permits investment advisers and investment funds to self‑custody cryptocurrency assets in certain circumstances. The proposal also allows state‑chartered trust companies to serve as custodians for those assets.
The SEC’s draft language outlines conditions under which advisers and funds may retain custody of digital assets, emphasizing security standards and reporting requirements. It distinguishes between cases where self‑custody is permitted and situations that would continue to require traditional custodial arrangements.
State trust companies that hold a valid state charter would be eligible to act as custodians for the assets covered by the proposal. The SEC did not specify additional eligibility criteria for these firms beyond their existing charter status.
The rule change aims to provide greater flexibility for investment advisers and funds while maintaining appropriate oversight of custody practices. Further comment periods and potential revisions are expected as the proposal moves through the regulatory review process.
